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Level 3
posted Mar 1, 2023 9:09:42 AM

Does Receiving a "Final K1" mean "this partnership has ended" and it is a "complete disposition?"

I had a real estate investment that sold in 2022.  I was a limited parter in this deal (passive investor).  The K1 is marked "final K1."  In turbotax it asks if “this partnership ended in 2022” and if this was a “complete disposition."  If the property sold in its entirety and my K1 is marked as final K1, is it safe to assume that the answer to “this partnership ended in 2022” is YES and that this was a “complete disposition?"  

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1 Best answer
Level 9
Mar 1, 2023 2:15:22 PM

Yes.  The partnership ended (i.e., you ceased being a partner in that partnership), and you're share was sold which qualifies as a 'complete disposition'

3 Replies
Level 9
Mar 1, 2023 2:15:22 PM

Yes.  The partnership ended (i.e., you ceased being a partner in that partnership), and you're share was sold which qualifies as a 'complete disposition'

Level 3
Apr 11, 2023 9:46:31 AM

@nexchap 

 

Also, if the partnership ended and was a complete disposition does that mean it was "liquidated" or just "sold?"

Level 9
Apr 11, 2023 9:56:20 AM

@Trey "sold" assuming you took action to sell your share to someone else.  "liquidated" if the partnership sold off its assets, shut down, and cashed everyone out.