My client and her mother are sole members of an LLC. My client bought out her mother on 5/1/11. Should I mark the 2011 short-year Partnership return as final since after that date it is a disregarded entity and will go on my client's Sch E? The LLC retained it's name & Fed ID #
As LLCs with one owner are not permitted to file as a Partnership, I agree that you should fild a short-year Partnership return and mark it as final for Jan 1 - April 30 (assuming calendar year for financials). The K-1's would flow to the Partner's Sch E and the remainder of the year would be reported on your client's Sch. C.
Thanks for your help! Just needed a second opinion! :-)
