Partnership - Sale of Interest to another partner
Hello,
I have a partnership that has several partners, one partner sold their 2% to another one for $2k mid year. They had a capital account of $3600 at beginning of year but business has huge loss for the year so their loss will exceed the amount in capital at beginning of year.
How do I handle this transaction on the 1065?
I haven't dealt with this situation before and want to confirm how to handle on 1065 return.
Thanks ahead for any input.
