Get your taxes done using TurboTax

The assets are classified as liquidating distributions to each partner.  Use the FMV that was determined when the equity was settled.  This is then the value is then compared with each partner's basis in the partnership to determine the FMV to the individual LLCs.

To report the final Partnership return and the distributions you can follow these steps in TurboTax Business:

1. Within your tax return under the Business Info tab and About Your Business, ensure the Type of Tax Year is correct
   • If the partnership dissolved during 2022 this should read Short Year beginning January and ending XXX
   • If the partnership was dissolved on 12/31/2022, this should read Calendar Year
2. The Has an Ownership Change line should say Yes
3. Continue until you get to the About Your Business questionnaire screen
4. Answer Yes to Is filing its final return because it was closed by the end of the year
5. Under the Partner/Member Information on the Partner Summary screen click Edit for each partner and Continue to the Partner Capital screen
6. Enter the liquidating Cash Distributions and the liquidating Property Distributions
7. Click Done and Continue to the Date of Ownership Change and enter the date of dissolution
8. Under the Federal Taxes tab and Income, scroll down to Dispose of Business Property and click Start
9. One the Select Disposed Asset screen, click Select for each asset
10.  Mark Sold
11. Enter the dissolution date and the FMV on the next screen 
12. Proceed entering/reviewing your return.