sorry for your loss.
The death of a partner often brings unanticipated and unwelcome tax and accounting complications to the partnership, the partner’s estate and heirs, as well as the partner’s final income tax return. When a partner dies, the tax year of the partnership closes for that partner, requiring tax allocations and entries to the partnership’s books.
Disposition of a partnership interest due to a partner’s death can involve basis elections to the successor partner’s interests, as well as questions as to how any suspended losses carried forward by the deceased partner must be treated for tax purposes
so I see 2 k-1s being required one through the date of his death reported on his 1040 and the other after reported on the 1041. this is also where the sale would be reported. this requires notifying the partnership of change of ownership and requesting a 754 step-up (if the partnership does them) based on market value on the date he died.
the partnership should supply sales schedule to aid in reporting the sale. you probably have one with the original k-1.
