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In simple terms (please ;) how is the capital account used in sale of a partnership?
I am selling an LLC, and have the capital account on the 1065s running pretty low....how does this affect the sale?
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In simple terms (please ;) how is the capital account used in sale of a partnership?
The capital starts with the money you put and is reduced by money taken out and losses claimed.
So when you sell your interest if the capital account (or your basis/cost) in the partnership is small, you will have a larger gain to report than if you had a large capital account.
Two things matter, what you sell if for and the remaining basis/cost of what you sold.
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In simple terms (please ;) how is the capital account used in sale of a partnership?
The capital starts with the money you put and is reduced by money taken out and losses claimed.
So when you sell your interest if the capital account (or your basis/cost) in the partnership is small, you will have a larger gain to report than if you had a large capital account.
Two things matter, what you sell if for and the remaining basis/cost of what you sold.
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In simple terms (please ;) how is the capital account used in sale of a partnership?
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