I have a couple of questions about ending inventory for a final 1065 partnership return. My business is structured as a partnership and we file a 1065 return. I am planning on retiring at the end of the year which means our partnership will have to file a final return. We will still have inventory at the end of the year. How do I properly calculate the ending inventory for my business?
My partner is planning to continue the business since it's profitable. But will need to start a new business as a sole proprietor. We aren't going to liquidate the inventory but split the inventory 50/50 to do with how we please. My partner is planning on purchasing my half of the inventory on January 1st. Do I need to report the sales of the inventory on my personal income tax return the following year?
I am also wondering if I need to report that I purchased inventory
