Message Font: Serif | Sans-Serif
No. of Recommendations: 2
In the past, this would have been reported on the partnership return with a K-1 distributed to each partner. At this point, the partnership does not exist.

If the payment is being made to the partnership, or to one member on behalf of the partnership, and then divided by that member among the former partners, my take would be that the partnership has been re-established, and would need to file one more tax return and issue one more K-1. If the payment is being made directly to each individual former partner, not to the partnership or a single member who divvies it up, then each individual partner would need to report it where the income from a K-1 would have placed it - presumably on Schedule E for the rental income and on Schedule B for any interest income. But you should probably consult with the attorney who oversaw the dissolution of the partnership to be sure.

Print the post  


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.