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Dissolution of Partnership

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L

lblb

Guest
Texas. My husband and I are currently in a partnership with another party who wants out. The other party is family. They have offered two options. One involving making tax-free gifts which would be paid back at completion of paper work for the dissolution. Another states for the sum of $10.00 and other considerations. I am not sure just what that means. Which option would be better? Also what advantage would there be for the party making the tax-free gifts?
 


L

loku

Guest
The “gifts” would not be gifts. They would be payments for the partnership interest. As for the contract stating it is for $10 and other valuable consideration, the law would still require that the amount paid for the partnership interest be reported to the IRS.

IF there is a significant amount of money involved in this transaction, I suggest you see a local lawyer about the best way to work it out.
 

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