Calculating basis when selling partnership share
I sold my share in a partnership on 12/31/22 (let's call it in Company Z) and have a few questions about my basis. First, does Company Z report my basis to the IRS and does my basis calculation when I file my taxes and report the sale have to match what Company Z reports (if they report)? Second, how would you recommend dealing with this situation: I had a client with my own company (let's call it Company A) who ended up paying fees they owed to Company A, to Company Z. My understanding is Company A will need to report this money as income, and pay tax on it. Which Company A will do. But my question is about how to ensure this increases my basis in Company Z. How can I ensure this is handled properly? Does I, or Company A need to issue any forms/documentation to Company Z (e.g. K-1, 1099, etc.) to 'get credit' for this money that was paid to Company Z (that should have been paid to Company A)? What pitfalls are there with this situation? What records do I need to keep regarding this?
