Partnership Valuation
JJH1969
Registered Posts: 110 Epic contributor 🐘
Unfortunately my Dad passed away before Christmas and he was a partner in a business. In valuing his share at the date of death would you use his capital account at that date or another method using balance sheet assets or turnover?
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Comments
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I am the accountant! I have read that for probate purposes it is just the capital account of the partner but wasn't sure if this was correct?0
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Is there a partnership agreement in place with a clause regarding the death of a partner?MAAT AATQB0
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I'm sorry to hear of your loss.
As above, there are a few ways of working out a valuation. This will depend on the type and size of the business.0 -
Was there a partnership agreement ? This may well be a good starting point as it may state any mechanisms in place to value each partner's share.0
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No no partnership agreement in place but I have found it in Tolleys tax guide and it is the capital account at date of death - thanks anyway0
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