change to partnership

[ardi600]

my client has used car dealership. sole proprietor till 12/31/2010. then he agreed to add a partner as of january first of 2011 but did not get his federal id number till 24 of jan. obviousely the new federal id number is set up as a partnership with irs and the old one was set up as a sole proprietor. could i just file 1065 for the whole year for him? or does it matter that the partnership id was received on the 24th in which case i would have to do a sch c for the first 24 days and then 1065 for the rest. also, the way i understand his ending inventory could be transferred to partnership for partnership interest.

[Gretel]

The partnership agreement should spell out the starting date and contributions and all other details.

[JG EA]

my client has used car dealership. sole proprietor till 12/31/2010. then he agreed to add a partner as of january first of 2011 but did not get his federal id number till 24 of jan. obviousely the new federal id number is set up as a partnership with irs and the old one was set up as a sole proprietor. could i just file 1065 for the whole year for him? or does it matter that the partnership id was received on the 24th in which case i would have to do a sch c for the first 24 days and then 1065 for the rest. also, the way i understand his ending inventory could be transferred to partnership for partnership interest.

In the IRA letter to the partnership, what does it say? On that letter they tell the new entity what returns to file and for what period.

[veritas]

partnership agreement

The partnership agreement should spell out the starting date and contributions and all other details.

A very novel idea.

Oh and a buy sell agreement. That would be icing on the cake.

[ardi600]

the partnership

agreement is on jan, 1 2011. however the federal id number for the partnership was not received till the 24. the irs letter is dated the 24th and does say the return is due april 15 of 2012(partnersip). but, i am just wondering, can i treat the entity as a partnership even though the fein was received on the 24th and the from the first of the year to that date transactions were done under the old fein number which was a sole proprietor.

[ChEAr$]

agreement is on jan, 1 2011. however the federal id number for the partnership was not received till the 24. the irs letter is dated the 24th and does say the return is due april 15 of 2012(partnersip). but, i am just wondering, can i treat the entity as a partnership even though the fein was received on the 24th and the from the first of the year to that date transactions were done under the old fein number which was a sole proprietor.

Yes. Formal existence of a partnership does not depend on receipt of an IRS ein.