LImited partnerhsip

[sdtaxman]

I have a client that set up a limited partnership with some real estate that she owned. The attorney has her as 1% general partner and 99% limited partner. She did not follow through and gift anything after the partnership was set up so we have filed the last years return with her getting 2 k-1's and reporting the total on her individual return. Is this correct? I can not see any other way to do it. Not sure what the purpose was in setting it up. Thank you.

[DaveinTexas]

I'm no lawyer

but....a Partnership usually is composed of 2 or more persons/entities. I don't see a partnership here if both partners are the same people.

I've seen an LP setup whereas the GP is a SMLLC (DRE). This always seemed funny to me because ultimately all of the income is reported on the same return but an LLC is not an individual.

Anyway, back to your post...I would read the Partnership Agreement (if one exists) carefully to ensure there is not another "entity" involved in this. I see the purpose of this arrangement, it just doesn't seem like it was properly created.

[JON]

Still can gift??

I have to think gifting was the intent or selling some limited partnership units. I think you still file the 1065 if the real istate has been renamed to the partnership's name.