Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
If you transfer a partnership interest (or an LLC interest assuming that you are being taxed as a partnership) with a negative capital account, for the most part there will be a taxable gain even if no cash or other consideration is received. The amount of gain recognized also has to do with how much debt the partnership has at the time of the transfer.

Partnership/LLC tax accounting can be very complex. There are many issues that have to be taken into account. If you dissolve the LLC or sell your interest, make sure you see a qualified tax advisor with experience in partnership tax accounting and real estate.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.