The equipment was salvaged in May 2019.
If that's what you're going to report, then you can't have a "final" 1065 for 2018. You'd have to report that on the "final" 1065 for tax year 2019.
The partnership is not disolved until all of the following are true.
- The end of year inventory balance is ZERO
- All capital contributions of all partners has been disposed of by the partnership - usually by either selling it or returning it to the contributing partner.
- All vehicles used in the partnership (even if less than 100% business use) have been removed from the partnership. Usually by returning it to the contributing member or converting it to the "personal use" of the contributing member, or showing some other type of disposition of the vehicle so that it is no longer in the partnership.
- All balance sheets are balanced at ZERO. This includes all bank accounts of the partnership too.
- The end of year inventory balance is ZERO.
All the above must be true in 2018, before the IRS will consider the partnership dissolved in 2018.
