My wife was in a two-person business partnership. She died in September. As her heir, I was given her share of the partnership's remaining cash on hand. Is it taxable?
The surviving partner told me this money had already been taxed in previous years and therefore would not be taxable now. Is this true?
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1 Best answer
IreneS
Intuit Alumni
Jun 4, 2019 3:10:01 PM
I'm sorry for your loss.
No. According to the IRS Pub. 541 - Partnerships,
the cash you received from the partnership is considered a distribution and is
not taxable as long as the amount you received does not exceed your wife's
adjusted basis in the partnership (which it probably doesn't).
2 Replies
IreneS
Intuit Alumni
Jun 4, 2019 3:10:01 PM
I'm sorry for your loss.
No. According to the IRS Pub. 541 - Partnerships,
the cash you received from the partnership is considered a distribution and is
not taxable as long as the amount you received does not exceed your wife's
adjusted basis in the partnership (which it probably doesn't).