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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11138
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a Partnership LLC, my partner with 5% left the

Customer Question

I have a Partnership LLC, my partner with 5% left the company and now I have the 100% I understand that I have to complete the schedule C as Sol Proprietorship My question is I have to fill out another form to inform to the IRS with this change? and What
happen with the extension of time Form 1065. Thank you Luz
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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What you've been doing in the past, or course, is filing the 1065 and giving a k-1 to both partners.

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The way IRS will know that there's no longer a partner is for that partner to get a final K-1.

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Checking the "Final K-1" box at the top of the form indicates that this will be the final K-1 the member will receive for this business.

Expert:  Lane replied 1 year ago.

So here, the LLC will continue to the end of the year as usual. There will only be one form 1065. The Schedules K-1 will reflect the withdrawal of one partner and the fractional share of profit/loss.

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You'll be responsible for the tax on your share of earnings for that period where there were two partners, and then the entire earnings for the remainder of the year.

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Then you'll do the schedule C for NEXT tax year.

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Hope this helps

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Let me know if you have questions

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Lane

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Expert:  Lane replied 1 year ago.

P.S.,

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You'll also check the final return box on that last 1065 as well.

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(Check box number 2 on line G of the 1065)

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If this HAS helped, and you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's the only way I'll be credited with a portion of what you've paid JustAnswer.
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Lane

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Customer: replied 1 year ago.
That means that I have to fill up the 1065
Expert:  Lane replied 1 year ago.

That's right, one last time

Customer: replied 1 year ago.
Thank you
Expert:  Lane replied 1 year ago.

You're very welcome ... Your positive rating … (by clicking or touching the stars or smileys on your screen) … is thanks enough! … That’s how we’re credited for the work here

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Lane

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