I was in an LLC since 2015, I got K-1s every year. Early 2023 they decided to sell the properties. Some partners wanted to cash out (including me) and others wanted to do an exchange to avoid capital gains. The exchange took place a few months later and those that accepted the exchange got no proceeds from the sale and just got a single 2023 K-1 for that LLC like they'd always gotten, the sale and exchange was transparent to them. As one who chose to cash out, I got a check for the proceeds from the sale. I recently got a K-1 for that LLC marked as a Final K-1, but all it has is Box 19 (Distributions), Code C, filled in with the amount that was my Ending Capital Account from my 2022 K-1, nothing in any of the other numbered boxes. In Box L ( Partner's Capital Account Analysis ) it has that amount as my Beginning capital account (of course), then the Box 19 amount in the Withdrawals and distributions line, making the Ending capital account $0. Makes sense. Then I received another K-1, interestingly NOT marked as Final K-1, for a new LLC created just for those who cashed out (LLC name is same as previous LLC name with "SELLER" added, different EIN). This K-1 contained Box 1 for some business income, Box 2 for some rental real estate loss, Box 9c for 1250 gain, Box 10 for 1231 gain, Box 19 Code A for cash distribution, and Box 20 codes Z for Section 199 and code AJ for Excess Business Loss Limitation. Then in Box L there's my distribution amount Box 19 from my old LLC Final K-1 as the Capital contributed during the year, Current year net income line comes from sum of Boxes 1,2,10 and then the Withdrawals and distributions contains Distribution from Box 19, with a small amount in the Ending capital account, but NOT zero. It makes sense, the Final K-1 from my old LLC was just to transfer my final basis over, and the K-1 for the SELLERS LLC contains the info for the sale and proceeds. For entering the Final K-1, I have my original LLC K-1s (I did two in TT because there was a Pass-through Entity involved) in TT to edit. From reading other posts about Final K-1s, it's obvious I select "This partnership ended in 2023" in the "Describe the partnership", even though it didn't end, but my participation ended. It's the next "Describe Partnership Disposal" screen that I don't know about. So many posts about that screen varied. All I know is that Final K-1 has no sales info on it, it's just to transfer my basis to the new SELLERS K-1. If I answer anything but No Entry, it will ask me for sales info, which seems to have nothing to do with the Final K-1. I saw some who said to select No Entry (which might not mark the K-1 as Final, and may lose any carryover loses, although I don't have any loses to carry over). As for the K-1 for the new SELLERS LLC, I'd have to enter that one into TT as a brand new K-1. But again, it's not marked as a Final K-1 (we are going to get a Final K-1 for the SELLERS LLC in 2024 because of more business expenses to take care of). So should I just enter the K-1 for the SELLERS LLC into TT like it's a brand new K-1 for a brand new LLC and answer None of these apply for "Describe this Partnership", and just let the amounts in the boxes take care of everything?
