Partnership liquidating distribution detailed example

28 Jul

Lets continue our example from Part 1 of the partnership started by Jerry, Tom, and Billy.

Throughout the dissolution examples, keep in mind the fact that Jerry has a 50% interest, Tom has a 30% interest, and Billy has a 20% interest.

These two pieces of information become critically important during the dissolution process.

Facts The taxpayer received a 2012 Schedule K-1 from an LLC taxed as a partnership.

This Schedule K-1 reported

These two pieces of information become critically important during the dissolution process.

Facts The taxpayer received a 2012 Schedule K-1 from an LLC taxed as a partnership.

This Schedule K-1 reported $1 on lines The partner footnotes included: "A distribution of the above number of shares of ABC company stock distributed to you in liquidation of your interest in XYZ, LLC.

For example, lets say that the partnership collects the full amount of receivables but can only sell the office equipment and furnishings for $30,000 and the building for $270,000.

Whenever the partnership receives less (more) than book value for an asset during the dissolution process, the difference is treated the same as a loss (profit).

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These two pieces of information become critically important during the dissolution process.Facts The taxpayer received a 2012 Schedule K-1 from an LLC taxed as a partnership.This Schedule K-1 reported $1 on lines The partner footnotes included: "A distribution of the above number of shares of ABC company stock distributed to you in liquidation of your interest in XYZ, LLC.For example, lets say that the partnership collects the full amount of receivables but can only sell the office equipment and furnishings for $30,000 and the building for $270,000.Whenever the partnership receives less (more) than book value for an asset during the dissolution process, the difference is treated the same as a loss (profit).

on lines The partner footnotes included: "A distribution of the above number of shares of ABC company stock distributed to you in liquidation of your interest in XYZ, LLC.

For example, lets say that the partnership collects the full amount of receivables but can only sell the office equipment and furnishings for ,000 and the building for 0,000.

Whenever the partnership receives less (more) than book value for an asset during the dissolution process, the difference is treated the same as a loss (profit).