club_cafe: withdrawing member

iras1 on

>>Ira said.....
<<
Of course, your partnership agreement must allow you to transfer shares.
>>
Are you saying that if your agreement is mute on the issue, you are
precluded from using shares for the payoffs? I am not convinced that
this is the case.

Rip,

I agree with you. I should have written, "unless your agreement requires you to use cash for the payoff..."

>>The IRS says that the member is a partner until the account is fully
paid off. It would seem to me that if you plan to withdraw the partner
fully from the suspense account, you would have to make provision in
your agreement to say that, although the member still has a balance
outstanding, he/she will not share in any income, expenses, gains, or
losses after the transaction date of the withdrawal.

Another reason why these boards are so much more useful when several knowledgeable people are reading and responding. There's always someone watching "your" back. Thanks.

Ira Smilovitz

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