The owners sold the business and agreed between them for different % ownership for the final partial year. Can these actions be processed simultaneously in the final year return?
As noted by @soultax09 , what you are wanting to do is most likely not allowed based on your limited facts.
The regulations are very specific on allocations between partners / members.
The rules can be very complicated, however, in most instances, the allocations need to be made in accordance with the member's interest in the LLC. Any deviation from this, you will have reached the edge of the cliff and the complexity drop is quick and dangerous.
And finally, of all the times to consider a change in the allocation, the final year is not the time to do so as you would most likely not meet the substantial economic effect provisions of the regulations.
The IRS does not like shifting of economic outcomes.
Thanks for the notes. Yes I would think that allocation change would need to be updated, I just wasn't sure if it could be done at the same time and what the process would be. This is a two owner (family) business and one has retired and moved away, then they sold and the mother is giving most of her share of the sale to her daughter.