Various Partial Withdrawals
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Various Partial Withdrawals If a partner has invested over some time $10K and the value increased to -say- $17K, and he does a partial withdrawal in cash for $15K, does he have any tax to declare? What would show on his K1? Is it true that by his partial withdrawal in cash, the other partners have now an increase in their tax commitment when they eventually do withdrawals? A partial withdrawal in form of appreciated stocks would bring about a "tax transfer". What is the tax basis for this partner and is there a change in the tax for the other partners? For this partial withdrawal, does the partnership allot the most appreciated stock or would it be 'fairer' to tediously select from various appreciated stocks a 50% gain equaling the increase in -above- value from $10K to $15K? Ado |
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