A partnership started the year with 2 partners. One partner buy out the other on 6/30/3010. Does the partnership terminates at that point ?
TIA
Does a partnership automatically terminates when there is only one owner left?
Mar 28, 2011
3 Replies
Yes.
That mean the remaining "partner" will have to file Schedule C for July-Dec, 2010?
TIA
Yes. Final partnership return ending June 30th. Sole-prop the rest of the year.
Of course, facts and circumstances dictate the final results. The buyer could have formed an entity to hold the other partner shares, or have their spouse buy out the shares. You'd have to see what actually happened with the buyout.
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