Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Is a Partnership return necessary if there were only expenses and it dissolved within a year?

Highlighted
Level 1

I have two clients that formed a Partnership in September 2019 to invest in a property  - each contributing cash and each were actively involved.  In December 2019 they decided not to invest, distributed the original investment less several thousand of expenses and abandon the Partnership idea.

Do they need to file a Form 1065 for 2019 in order to each receive a K-1 to report the loss on their personal tax returns, or is there another way for them to take the losses without filing for a partnership that didn't even survive for more than a few months in 2019?

Labels (1)
0 Cheers
2 Replies 2
Highlighted
Level 8

if they applied for a FEIN... and got the CP 575 letter... it will tell what returns are due next. AND if you don't play nice with the IRS and file said returns... it's like $195 per partner, per month for non-filing of the Form 1065... or late filing... you be the judge..

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.
Highlighted
Level 8

@how8466  mark solved if  this answers your question...helps others in the search ...to look for a solve to their similar problem..not a whole list of answers with similar questions

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.
0 Cheers