disregarded entity question

[Unregistered]

client forms 2 person llc holding rental apartments...
buys out other partner....do i need to file form 8332...supplying
disregarded entity info (the LLC) because now he will just
put the apartments onto a schedule E. what other instances might i
need to file 8332 regarding "disregarded entity" info??
thanks for responses...love this board.

[Bees Knees]

Form 8332 is only used when you want to elect to be taxed as a C corporation. There is no other use for the form.

When one partner buys out the other partner, the partnership terminates. The remaining partner continues to operate the LLC as a disregarded entity...Schedule E. You would need to file a final 1065 as the partnership no longer exists.