Client exchanged 50% of his interest in Partnership 1 for 50% of his partner's interest in Partnership 2 making him no longer a partner in Partnership 1 but making him 100% owner in Partnership 2. How do I report this? Do I file a Form 8824 Like-Kind Exchange?
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Do I file a Form 8824 Like-Kind Exchange?
The only thing that qualifies for § 1031 exchanges since TCJA of 2017 is real estate.
And that *partnership* that ended up with just one partner is no longer a *partnership*. It's possible that final return should have been filed a while ago.
This also sounds like a final return for at least one of the partnerships. "making him 100%" - a partnership must have at least 2 partners, not a sole proprietor.