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mahesh-morjaria-
Level 1

How do I record partner buyout in quickbooks

The LLC bought out a partner ... how do I record that in Quickbooks and in taxes
2 Comments 2
Rustler
Level 15

How do I record partner buyout in quickbooks

Assuming there are still at least two partners remaining in the partnership, roll up his drawing and investment accounts into his equity account.  Then write a check for that amount and use his equity account as the expense (reason) for the check.

 

If there is only one partner remaining, then the partnership closes and a sole proprietorship is formed

 

Use schedule M2 for reporting the changes to a partner capital account

sending file thru file transfer
Level 1

How do I record partner buyout in quickbooks

Hi, So I have a client with 2 partners.  One partner bought out the other partner.  The bought out partner has draws of $24,479.00 and that same partners equity is $8661.00.  The draw figure includes buying the partner out.  Do I close out the draws against the partners equity and then move the negative equity into the partner who is left? 

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