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john7
New Member

Can TurboTax be used for a situation where one partner in a 2-partner LLC has died?

My wife and I formed a 2-person LLC. She was less than 50% owner. She passed away in Nov. I am finding TurboTax may not be appropriate for figuring my taxes this year. Can I create a part-year 1065 for her and then add her estate as a new partner for the rest of the year? Otherwise it seems I'll have to dissolve the company.

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RichardG
New Member

Can TurboTax be used for a situation where one partner in a 2-partner LLC has died?

You should only prepare one Form 1065 for your LLC for the year. As you enter or review the data for your deceased's wife's interest in the LLC, check the box to show she left the company during the year (see screenshot below).  Then add her estate as a new member.  This will create one Form 1065 for the LLC and three K-1 forms, with each member receiving an appropriate share of the company's income and deductions.

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RichardG
New Member

Can TurboTax be used for a situation where one partner in a 2-partner LLC has died?

You should only prepare one Form 1065 for your LLC for the year. As you enter or review the data for your deceased's wife's interest in the LLC, check the box to show she left the company during the year (see screenshot below).  Then add her estate as a new member.  This will create one Form 1065 for the LLC and three K-1 forms, with each member receiving an appropriate share of the company's income and deductions.

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