turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

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?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

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. 

View solution in original post

2 Replies

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. 

In simple terms (please ;) how is the capital account used in sale of a partnership?

thanks!  Trying to reconstruct what other preparer did...kept the capital acct the same each year by adding and subtracting expenses for the year, so cap account stayed the same forever...doesn't make sense..others I have subtract expenses and capital account goes down each year.
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies