jimj
New Member

What are tax implications of selling shares of a partnership to my spouse?

I invested $10,000 in a partnership but due to a conflict of interest, I need to withdraw from the partnership. I get a Schedule K-1 yearly from this partnership. 

If I sell my shares to my spouse for $1, what are the tax implications? The remaining capital in the partnership is around $5000. Since we file jointly, does the loss and gain cancel one another out?