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March 1, 2025
Question

How to answer "Describe Partnership Disposal"

  • March 1, 2025
  • 1 reply
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We changed our business from Partnership to S corporation last year. I received final a K-1 for Partnership and don't know which one I should select for "Describe Partnership Disposal".

 

No entry

Complete disposition

Disposition was not via a sale

Sold and am receiving payments

    1 reply

    PatriciaV
    Employee
    March 2, 2025

    When you receive a Schedule K-1 for a dissolved business, the best answer for the "disposal" is "not via a sale."

     

    Be sure to mark the K-1 as final. Then add a new K-1 to enter the Form 1120S Schedule K-1 from your S-Corp return.

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