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Level 1
June 1, 2019
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Do I need to file a K-1 if I left the company mid-year?

  • June 1, 2019
  • 1 reply
  • 1 view
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Best answer by Rick19744

Your leaving the company has no impact on whether you need to file a K-1.

The company is responsible for the filing of the applicable entity tax return and K-1's.  You will be sent a K-1, just as you were in prior years, for the period in which you were there.  The K-1 should be marked final.

Additionally, you should be maintaining a schedule of your basis.  You will need to update the basis schedule for the final K-1 activity.  This will determine your overall gain or loss on your investment in this company.

1 reply

Rick19744
Level 13
Rick19744Level 13Answer
Level 13
June 1, 2019

Your leaving the company has no impact on whether you need to file a K-1.

The company is responsible for the filing of the applicable entity tax return and K-1's.  You will be sent a K-1, just as you were in prior years, for the period in which you were there.  The K-1 should be marked final.

Additionally, you should be maintaining a schedule of your basis.  You will need to update the basis schedule for the final K-1 activity.  This will determine your overall gain or loss on your investment in this company.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.