Technical topics regarding tax preparation.
23-Jan-2020 5:30pm
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AN LLC was 50-50 owned by partners A and B before.
In 2019, Partner A gifted his shares to his brother (lets call him C). Therefore, the LLC was owned 50-50 by partner B and since then.
I remember there was a 'technical termination rule' before. But I also recall this rule had been abolished. Therefore, the LLC just needs to file one tax return for the whole year of 2019, is it correct?
23-Jan-2020 6:56pm
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Correct, but you will have to allocate income to A and C for the part of the year they owned the interest.
CPA, Retired
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