Drop and swap entered into in November 2020 but sale did not take place until 2021.

[jemciv]

LLC (two members 50%-50%) has a drop and swap entered into in November 2020 but sale did not take place until 2021. I have distributed the property out on the K-1 for 2020. Checked box 12 YES on 1040 Schedule B - tenancy-in-common agreement in place for distribution. K-1s for the partners had a minor adjustment to balance the capital accounts. Should the K-1 for member receiving the property distribution be marked final? Is there any additional disclosure?

[BobKamman]

The drop and swap approach describes an exchange where a partnership interest is converted to TIC before the exchange takes place. But it sounds like just one partner got 100% of the property.  And I don't see a Box 12 on Form 1040 Schedule B.  

[sjrcpa]

Partner receiving property will have a final K-1 if he is no longer part of the partnership.

And if this is the case, there is no longer a partnership either.

[abctax55]

And there's a good chance that final partnership return may be late.