No, you are not a partner in a partnership if you do not share in the profits, losses of the business.
You can certainly continue to offer your services pro bono, but should not be included in the form 1065 filings.
If you have previously been a partner in the partnership, and will no longer continue, then you:
- Should receive a final K-1
- Should receive a liquidating distribution when exiting. If you are not receiving any liquidating distribution upon exit, you could still have tax consequences on "deemed distributions". This area is way beyond the scope of discussing in the community.
- Depending on past operations, if you used debt to take any losses, you could have a tax consequences
- Hopefully you have maintained your tax basis (assuming you were a partner), as this is key in determining your gain or loss upon your exit; which is the year in which your partnership interest becomes 0% profit, loss or capital.
- The form mentioned in your facts has nothing to do with whether you are a partner or not.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
