club_cafe: Re: Re: Re-establishing withdrawn member

iras1 on

Paul,

I don't think there is a problem here. I would want two K-1s. The first K-1 would be marked "final" and that would "trigger" the need to report (on the 1040) the capital gain/loss on withdrawal. The second K-1 would represent a new equity interest in the partnership and would establish a new holding period. The partner count on the front of Form 1065 shouldn't be decreased, because it's really a count of number of K-1s attached.

Ira Smilovitz

In a message dated 10/09/03 12:51:12 PM Eastern Daylight Time, moeller@bivio.com writes:

IraS1@aol.com wrote:
> Just curious, but what would happen in the case of a member who had a full withdrawal in January, but then rejoined in October?

The returning member would appear as a totally separate
individual. The disadvantage would be that if they returned in the
same year, our software will generate two K-1s. At tax time, the K-1
amounts would need to be combined by hand, and the "partner count" on
the 1065 would need to be reduced by one.

Paul Moeller
bivio, Inc.

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