Husband and wife had a general partnership, owned 50/50. During tax year they converted to an LLC. At the same time, they changed the ownership percentages. Husband material participates and wife does not. Conversion from a GP to an LLC does not require a new tax ID and is not a deemed sale or distribution. Having trouble knowing how to file the 1065(s). During part of the year, wife is a GP and net income is subject to SE tax. During the other part of the year, she’s a limited partner, and net income is not subject to SE. Different check blocks and numbers on the K-1 at different times of the year. The cleanest thing, in my mind, would be to file a final K-1 for the GP and an initial K-1 for the LLC, but I don’t believe you can file two 1065’s for the same TIN in a given year. Any advice?
