Originally Posted by Salami70
last March I purchased half of a commercial property-my father owns the other half. The previous half owner had passed away and my father has dissolved that partnership. However the renters still have the partnership info on the 1099 form. My question is do I just go ahead and ignore that info and still claim my half of the 1099-misc rents? . Or how do I handle it? Also I never entered into a partnership for this property-just half owner
i guess it depends; the business continues to operate after the dissolution but only for a limited period of time. The outgoing partner must negotiate a settlement with the other partners that details the division of the firm's assets between the owners. Dissolutions go to court if the partners cannot agree on how to split the firm's assets and liabilities. Generally, you must dissolve and then terminate a partnership if any partner dies. If you and the other remaining partners want to continue to work together then you must simply create a new partnership after the original partnership stops operating. However, in some states, such as Ohio, you can keep a partnership active after the departure of one partner if the other partners buy out that partner's share of the firm. Generally, you can only do this if your original partnership agreement included a buy-out clause.please contact the Dept of revenue of your state for more accurate info in detail.