Partnership question

[NotEasy]

Two partners formed a partnership to hold a rental property some years ago. They sold they rental property in 2007. A few questions:

(1) Since there is nothing else in the partnership, can we assume that the 2007 partnership tax return will also be the final one?

(2) Do they report the sale of the rental property in the Form 1065 and carry over the gain through the K-1 to their individual tax return? Or do they report the sale of the rental property (their own portion) in their own individual tax return?

Thank you.

[Bees Knees]

1) yes

2) a) yes

2) b) no

[NotEasy]

1) yes

2) a) yes

2) b) no

Thank you Bees Knees. You have always been giving concise replies (based on my observations) and precise answers (which is well-known among everyone here).

[sea-tax]

1) yes

2) a) yes

2) b) no

I would agree mostly with Bees except for number 1 I would say maybe. What if the client wants to purchase a new rental with the same partner. Could they not use the same partnership. It might save them some legal expenses. If they are really ending all ties then I would say Bees is correct.

[dsi]

NotEasy, be sure to check the "final" return box on the 1065, to indicate this will be the final return.

[NotEasy]

NotEasy, be sure to check the "final" return box on the 1065, to indicate this will be the final return.

Thank you for the reminder. I surely will.

[NotEasy]

I would agree mostly with Bees except for number 1 I would say maybe. What if the client wants to purchase a new rental with the same partner. Could they not use the same partnership. It might save them some legal expenses. If they are really ending all ties then I would say Bees is correct.

Yes, one of the partner has expressed clearly that they plan to dissolve the partnership.