Question

Final K-1 help in answering questions regarding "Describe the Partnership" and how I disposed the partnership?

Forum|Forum|2 years ago
March 16, 2024
1 reply
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Many years ago, I inherited a partnership in a LLC . This business sold this year for which I received a final distribution and a final K-1. I don't know how to answer "describe the partnership". Would it be "This partnership ended in 2023" or none of these apply? And also I don't know how to answer "Choose how this partnership was disposed" if I answer that the partnership ended.

LLC

PatriciaV

Yes, check the box for "This partnership ended..." because the entity ceased operations. Your interest was disposed in a liquidating distribution, which may have created a taxable gain for you if the amount exceeded the basis you inherited.

It's possible you may not have records of the fair market value for the partnership when you inherited it. If this is not a publicly-traded partnership, your initial basis may be zero. The executor of the estate may have records that could be helpful.

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