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Level 2
August 3, 2026
Question

how do i show a transfer of a partnership interest from one partner to another partner on form 1065 in intuit proseries?

  • August 3, 2026
  • 1 reply
  • 18 views

In June 2025 Partner A transferred his individual 90% partner interest in Partnership ABC to Partnership XYZ. 

Partnership XYZ now has a 90% partner interest in Partnership ABC.

This was a transfer, not a sale.

How is this transfer shown on Pro Series Form 1065 and Schedules K-1?

 

    1 reply

    Intuit Community Champion
    August 3, 2026

    I believe the IRS considers a transfer of a partnership interest a sale. If no money or property or debt relief  changed hands then it is a gift, and depending on value you may need to file a 709. As far as entering it in ProSeries  just adjust the partnership K1 worksheets and if it is midyear you need to use the special allocation worksheet