When does a partner "terminate" for distribuiton

[jkharvey]

One partner stopped working for the company in May to go to work for another company that he owns. That arrangement did not work out and he returned to work at the first company within 6 weeks. In the mean time, a total distribution was processed for him. When does a partner actually "terminate" for distribution purposes?

[Bird]

If you're asking whether that was a legit termination, I think it could be. The facts and circumstances as you presented them sound ok, especially if the partnership itself changed and that partner no longer had any interest in the profits. If not then it's a little dicier and I don't know that you can get a definitive answer here.

Sounds like it was more of a kind time than a mean time if he was able to get his money out .

[jkharvey]

Thanks for your reply. Of course, the situation is on the "dicey" side and this partner has the same partnership interest that he always had. Unfortunately he's not old enough for in-service distribution.