LLC Partnership Dissolved 2011/tax questions

[Carole M.]

In april 2009 a LLC Partnership was formed (50/50) between two siblings. The Partnership was dissolved June 20, 2011 with one partner (myself)selling their membership interest/share in property to the other. The remaining sibling changed the LLC to a Single Member LLC and owns the property 100%.

I sat down with my CPA during the summer and went over Capital Contributed (this includes Cash Contributions, my share of Land/Building Value and Depreciation); Income Recognized, Distributions, Losses Recognized and a Capital Bal at 12/31/10. We listed what the 50% share sold for, legal fees and came up with an Adjusted Sales Price and then a small Gain.
I feel we have the tax information we need for my 2011 tax return, but now we must wait for her to file the Partnership Return/K1 for 2011.

I guess my questions is: The Partnership was only for 5 month/20 days in 2011, can she file a Partnership Return for the Calendar Year 2011? What forms should I expect to received other than the Partnership Return and K1's?

I would appreciate any information you can provide.

[Bill Walston]

Originally posted by Carole M.:

I guess my questions is: The Partnership was only for 5 month/20 days in 2011, can she file a Partnership Return for the Calendar Year 2011? What forms should I expect to received other than the Partnership Return and K1's?

I would appreciate any information you can provide.

A 1065 SHOULD be filed for 2011, however it will not be for a calendar year. It would, instead, be a final short-year return. The "partnership" effectively ended on June 20, when you sold your membership interest to your sibling.

Your sibling would, on that same date, begin operations as a single-member LLC and would report any profits and losses from that date forward accordingly.