Business & farm

if the old partner sold directly to the new partner, the partnership does not report the sale except for any 751 gain. the partnership probably should elect 754 treatment to give the new partner additional basis if he paid more than the value of the previous partner's account. 

 

this is a complex situation, so if you are unsure of how to do this, the use of a pro for this year is highly recommended.

 

 

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