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Asa Carola plansa toa retirea froma Thea Marina,a marinaa ownersa Bob,a Amy,a
anda Carola havea starteda toa discussa whata willa happena toa Carolsa sharea ofa
interesta sincea shea noa longera wantsa toa bea activelya involveda ina thea
operationsa ora decisiona makinga processa ofa runninga Thea Marina.a Asa theya
alla havea interesta ina Thea Marinaa theya alla musta decidea togethera whata toa
doa witha Carolsa sharea ofa interest.a Theya havea ruleda outa sellinga thea
businessa asa Boba anda Amya wisha toa continuea operationsa anda Carola isa
okaya witha thea continueda operationa ofa Thea Marinaa aftera shea retires.a
Takinga ona additionala debta toa buya Carola outa alsoa isa ana nota ana optiona
becausea Boba anda Amya havea noa desirea toa takea ona additionala debta toa
buya Carola out.a
Boba anda Amya havea approacheda Carola witha anothera alternativea ifa shea
doesn'ta wanta toa liquidatea hera sharea ofa interesta entirelya shea cana finda aa
buyera fora hera sharea ofa interesta ina thea business.a Carola isa consideringa
thisa asa thea bettera alternativea sincea ita willa allowa Thea Marinaa toa continuea
ona withouta ana interruptionsa intoa normala businessa operations.a Boba hasa
donea somea researcha anda founda thata thea IRSa hasa laida outa somea specifica
guidelinesa arounda thea salea ofa interesta anda thea relateda transaction.a
Undera IRSa guidelinesa thea ownershipa interesta ina Thea Marinaa isa treateda
asa ana asseta thata cana bea purchaseda ora sold.a Carola willa treata thea
proceedsa froma thea salea ofa hera interesta asa thea salea ofa ana asseta anda willa
paya aa taxa ona thea gaina ora lossa ona salea ofa hera ownershipa interest;a anda
ownershipa interesta musta bea solda area faira marketa value.a
Boba anda Amya willa nota bea involveda ina thea salea anda Carola cana sella hera
ownershipa interesta toa anothera person,a legala entity,a partnership,a ora
corporationa asa shea pleasesa anda aftera thea salea shea willa notifya Boba anda
Amya thata thea salea hasa beena completed.a Thea salea willa bea reporteda ona
thea Forma 1065a taxa returna anda Carola willa bea issueda aa finala K-1.a Carolsa
ownershipa interesta accountsa willa bea reduceda toa $0a a anda thea newa
partnersa ownershipa interesta willa bea increaseda toa similara amounts.a
Whena thea IRSa reviewsa returnsa fora completenessa anda accrcurya theya
takea aa looka ata thesea detailsa toa indicatea ifa therea wasa aa salea ofa ownershipa
interest.a Carola willa alsoa reporta thea salea ona hera Forma 1040a asa Schedulea
D,a Capitala Lossa ora Gaina anda willa includea Forma 8949a anda Forma 4797a asa
needed.a Ina Carolsa besta interesta shea shoulda ensurea thata thea salea ofa thea
transactiona isa reporteda accordinga toa IRSa code,a anya deviationa froma thea
codea coulda seena seena asa fraudulenta intenta ora aa motivea toa avoida payinga
taxes.a
Ita isa agreeda upona thata ifa Carola choosesa toa sella hera ownershipa interesta
shea woulda finda aa suitablea buyer,a buta ina thea eventa ofa hera untimelya
death,a Boba anda Amya willa havea quitea aa tediousa taska ona theira handa toa
reorganizea thea partnershipa ifa theira isa noa formala agreementa ina placea ata
thea timea ofa hera death.a Ifa businessa operationsa ceaseda altogethera aftera
Carola diesa thea partnershipa willa havea toa bea dissolved.a Anya incomea madea
bya Carola willa bea reporteda ona hera finala returna anda hera estatea willa havea
toa decidea rathera theya woulda likea toa obtaina ownershipa ofa hera sharea ina
ownershipa interest.a Ifa Carolsa estatea doesa nota wanta toa obtaina hera
ownershipa interesta Boba anda Amya maya havea toa buya outa hera ownershipa
interesta ora theya coulda trya toa finda aa suitablea buyera fora hera sharea ofa
ownershipa interest.a Ina thea worsea casea scenarioa ifa Amya anda Carola can'ta
finda aa suitablea buyera ora thea estatea doesa nota obtaina ownershipa interesta
theya willa havea toa sella thea businessa completelya ora closea downa ifa
servicesa offereda bya Carola causea businessa activitiesa toa stop.a
Bob,a Amy,a anda Carola shoulda reviewa theira partnershipa agreementa toa
ensurea thata eventsa sucha asa untimelya deathsa area addressed.a
References
Ellentucka ,a A.a (2015,a Augusta 1).a Accountinga fora thea Deatha ofa aa Partner.a
Retrieveda Marcha 24,a 2023,a froma
https://www.thetaxadviser.com/issues/2015/aug/accounting-for-
death-of-partner.html.a
LBa &a Ia Transactiona Unit,a IRS.gova (2021).a Retrieveda Marcha 23,a 2023,a
froma
https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=web&c
d=&cad=rja&uact=8&ved=0CAQQw7AJahcKEwjI-
5HLlfX9AhUAAAAAHQAAAAAQAg&url=https%3A%2F%2Fwww.irs.
gov%2Fpub%2Firs-
utl%2Fsale_of_partnership_interest.pdf&psig=AOvVaw0dvVj78Oz93
7YDrONr50hq&ust=1679760242718891.a
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