Husband/Wife Partnership Dissolution (LLC)

[Gretel]

My clients can and want to get away from filing 1065's and convert the MMLLC to a SMLLC owned by husband. There is only a very brief paragraph for dissolution in the OA. I assume hubby needs to legally buy the partnership interest of his wife and, at that point, is automatically a SMLLC for tax purposes? Dealing with converting the LLC is easy but I am not very clear how hubby get ownership of 100% of the assets. Vehicles and such are registered in the LLC's name, so no retitling of assets. Would it be an option for wife to gift either her partnership interest or the assets to hubby? If so, is a gift tax return required? This is not a community property state. Also important to know that there are no hot assets and no liabilities.
TTB didn't provide much guidance for this specific situation. Any pointer in the right direction for my own research is appreciated.

[terryats]

Here is a IRS link for the procedure to close a partnership. https://www.irs.gov/newsroom/closing-a-partnership. Don't think a gift return is needed, as wife just wanted out of partnership leaving her share of assets in partnership. Husband will continue to run business as SMLLC (schedule C).