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Individual Partner in partnership transfers their interest to a new LLC (partnership) that they have the same ownership percentage in. Transfer is done March 20. How would the K-1 look... K-1 to individual up to March 20 and K-1 from March 20 - Dec 31 for LLC (partnership)??
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Next question... Partner A (50%) and Partner B (50%) own Old Partnership... Partner A transfers partnership interest to New A LLC which he owns 100% and Partner B transfers partnership interest to New B LLC which he own 100%.... is this a technical termination of the partnership?
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There is no such thing as a technical termination anymore.
Note the disclosure required on the K-1 when the partner is a SMLLC disregarded for tax purposes.
The more I know the more I don’t know.
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One more question, does anything change if say you and your spouse are both 25% owners of original partnership and you assign your interest to a partnership (LLC) that you and your spouse own 50/50?
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Unless this is community property, they now have to file a 1065 for the new LLC.
The more I know the more I don’t know.
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Thanks so much. Good Luck during tax season.
