I withdrew from a partnership in 2020 and transferred ownership to the other partner. That partner filed the return with Turbotax desktop and said no K-1 was generated for me, but I'm pretty sure I am supposed to receive a K-1 marked "final" (regardless of how much income was made), and was confirmed by a CPA.
Am I to assume my ex partner completed the return incorrectly? And that we will need to file an amendment?
This partnership return was already accepted, as today (3/15/21) is the deadline.
Thanks for help and insight!
It depends. When did you withdraw and what documents were provided when you withdrew?
If you and your partner were the only members of the partnership, when you withdrew, there ceased to be a partnership at that point.
There would have been a requirement for a final partnership return to show the income and expense allocation upon dissolution of the partnership.
After your withdrawal, the entity ceased to exist and the business would have operated as some other type of entity with its own filing requirement.
It depends. When did you withdraw and what documents were provided when you withdrew?
If you and your partner were the only members of the partnership, when you withdrew, there ceased to be a partnership at that point.
There would have been a requirement for a final partnership return to show the income and expense allocation upon dissolution of the partnership.
After your withdrawal, the entity ceased to exist and the business would have operated as some other type of entity with its own filing requirement.
Thanks for that insight @JeffreyR77
I withdrew in Q3 2020, and what we did was notify the secretary of state, and as far as notifying the IRS, I just assumed that would take place in the return that was just filed 2 days ago.
And we didn't encounter the final partnership requirement that you mentioned. It sounds like we will need to file an amendment to get this sorted out properly? Can we ask for help from a TurboTax pro for that?
Thanks