DTNY07
Level 7

I didn't think there would be a 1099 issued (for the reason you mentioned), so that I agree with.  I don't deal with the former partners, but they had posed that question to the two new partners.  The K-1 = I thought depending on how the wording of the sale agreement was, they could still have it as guaranteed payments.  Just no other activity. That and the prior CPA didn't mark their K-1s as final (which confused me).  But, reading your response, your reasoning is correct and makes sense to me now.      I was off base with my reasoning for asking it.  Thanks for your help.  

The date of sale was definitely 2020.  The new partner that was already a client of mine told me about it before it was happening.  I should have asked for the sale agreement when i did the first quarterly estimates during June 2021.  

So I guess then it is up to the previous partners to report everything correctly on their 2021 personal returns.  I don't know what they did in 2020, nor should I care as I am not their CPA.  Part of the reason for my original question was did I need to issue anything in 2021 from the LLC to the 2 previous partners.

 

 

 

0 Cheers