A partnership redeemed a partner's entire interest for a very small amount (20k) compared to their capital account (200k). Now there is only one owner, so the business can no longer continue as a partnership.
Wondering how to show this liquidating distribution and subsequent change to a single-member LLC on the final partnership return. What happens to the remaining capital of the exiting partner? Do I zero out the Schedule L on the partnership return, even though the business is continuing with the one owner?
This is a new client and all this took place before they came on board with me.
Wondering how to show this liquidating distribution and subsequent change to a single-member LLC on the final partnership return. What happens to the remaining capital of the exiting partner? Do I zero out the Schedule L on the partnership return, even though the business is continuing with the one owner?
This is a new client and all this took place before they came on board with me.