One Partner bought the other out....how to handle properly.

[Denne]

This is something for me. I have one Partner in one LLC that bought out the other. This LLC is basically a Rental house and also a Commercial building. They have owned these properties for more than 15 years.

The other LLC....same former partners is a Repair business. Also owned for the same period of time.

Am I responsible for providing the partner that sold, his part of the business, with cost of properties and business equipment.

I have shown the transaction as a Cash Distribution.....that is how I view it.... however the remaining partner did form another LLC for the Rental properties and formed a Corporation for the Repair business.

This seems overly simple....makes me think I am missing something

Thanks!

[kcjenkins]

Sounds like, if I understood properly, that you have a liquidating distribution situation, for both partners. Both of them should get a copy of the final 1065s.

[Tax Prep by Deb]

I don't know the answer to your question, but I am perplexed as to why it was moved from the general chit chat forum to this one?

Hopefully if it was done in error it will be moved back so others who do know the answer will be able to respond.

Deb!

[kcjenkins]

I don't understand what you mean Deb? It's in the chat forum, and has been all along.

[NECPA in NEBRASKA]

KC, I know what Deb meant. It was showing up in the VMS forum a couple of days ago.

Bonnie

[kcjenkins]

Weird. I did not see that. Glad to know what the deal was.

[Tax Prep by Deb]

KC, I know what Deb meant. It was showing up in the VMS forum a couple of days ago.

Bonnie

KC it showed up under VMS and indicated it had been moved there. I responded simply to draw attention to it in hopes that it could be moved back. It was obvious it didn't belong on that forum.

I guess I should have been clearer.

Deb!