If I bought out my partner in an LLC last year, how does that "income" get reported to my partner? Does the LLC report it on the 1065/K1 or by some other method?

[displayedname]

My business partner and I were each 50/50 partners on an LLC until December 31st of last year.  At that point, I purchased his "shares" (LLC units) for $X and then owned the LLC 100%.

How does the $X get reported on the business or personal taxes?  I couldn't find anywhere in TurboTax (Home & Business) to report it, and I'd have to believe that it gets reported somewhere for both of us.

As well, the profit that was made last year up until the point I bought his shares would be split on our taxes as well? 

[Rick19744]

The partnership does not report anything related to this "purchase" since it was you individually that purchased the units.

The partnership will file a final return through the date of sale.  The income  / loss will be allocated based on ownership up to the date of sale.  Make sure you indicate that this is a final return and both K-1's are marked final.  

All activity post sale transaction will be reported by you individually on your personal tax return on form Schedule C.

There are a number of issues here.  I have attached a link to an IRS revenue ruling that explains what happens in this instance. It can be fairly complicated and depending on the $$ you may want to get some assistance from a tax professional.

https://www.irs.gov/pub/irs-drop/rr-99-6.pdf

[LAL5]

If the partner purchased his partner at this basis, how do you report on the K1 for each partner?

Is it reported as a contribution/distribution?

[Critter-3]

I highly recommend  you seek local qualified professional assistance for a final partnership return if you are not sure of what you are doing.