Found my answer on this thread https://ttlc.intuit.com/community/business-taxes/discussion/if-your-schedule-k-1-is-marked-final-at-...
Thanks to replies by there by pixiedent and DaveF1006 which gave input to my scenario also. Everything seems to hinge on how to describe our LLC disposal. The LLC simply held a Mortgage Note loaned. It had no Capital Assets or Equipment etc at any time. Only collected Mortgage Pmts, the Interest was taxable, Principal loaned not taxable. Our personal 1040s were taxed on interest income each yr. So when Mortgage paid in full was the Final K-1.
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On my 1st run through the Business Investment->Schedule K-1 Questions on (Described the Partnership)
I chose->This partnership ended in 2024. Ok so far.
But on the next question (Describe Partnership Disposal)
I chose->No Entry since there was nothing to dispose off.
At end of questions the Review and Error Check all were good. But when I viewed the Forms the K-1 did NOT have Final K-1 checked at Section Label FINAL/AMENDED
[ ] Final K-1
[x] Partnership was discontinued during 2024
[ ] Partner sold or otherwise disposed of entire interest in 2024
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And if I tried to check the Final K-1 on the actual Form it started asking other questions that did not apply.
So went back thru the Questions again, at (Describe Partnership Disposal)
I chose->Disposition was not via a sale.
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And at the question (Enter Sale Dates) I left both boxes Purchase and Sale Date [ ] EMPTY since nothing was purchased or sold.
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Ran Review and Error Check all were good. View Forms then had Final K-1 checked at Section Label FINAL/AMENDED
[x] Final K-1
[x] Partnership was discontinued during 2024
[ ] Partner sold or otherwise disposed of entire interest in 2024
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I also ran it thru one more time and put a Purchase date in for the start of the Mortgage. I left the Sale Date Empty as before. I got the exact same results
[x] Final K-1
[x] Partnership was discontinued during 2024
[ ] Partner sold or otherwise disposed of entire interest in 2024
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So I went back and left the Purchase date EMPTY since it just didn't seem to apply in my scenario. I going to go with that.
But always appreciate any comments on input on these findings.
