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K-1 from an LLC that we ended. how to "describe partnership disposal"

Forum|Forum|2 years ago
March 10, 2024
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I was the manager of an LLC that has now ended. There is no inventory products resources or even initial investment. It never really even started. There was no income or expenses for 2023. I have the final K-1 that was prepared.

On the screen where TT asks to describe the partnership disposal, I selected the option "Disposition was not via a sale".

When I finished and reviews the final forms prior to efiling I noticed that TT marked option 2: "gifted partnership interest"

This seems strange to me. Is this correct? Option 1 looks more accurate. Should I mark complete disposition instead?

if so, I’d assume I’d set sale price to 0. For basis, since there was no purchase into the partnership is that 0 as well?

Best answer by PatriciaV

Yes, for simplicity choose "complete disposition" with zero sales proceeds and zero basis. These entries will close out the K-1. If asked, be sure to check the box for "final K-1" and that it should not be carried over to next year.

PatriciaVAnswer

Yes, for simplicity choose "complete disposition" with zero sales proceeds and zero basis. These entries will close out the K-1. If asked, be sure to check the box for "final K-1" and that it should not be carried over to next year.

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