LLC change in partner

Technical topics regarding tax preparation.
#1
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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?
 

#2
lckent  
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597
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21-Apr-2014 8:19pm
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Colorado
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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