I had a partnership that started in July 2007 and end in Jan 2008. Can I just claim my tax year for that entity to be between those dates and then the partners will file the K-1 with their 2007 personal return.?
While waiting a year to pay taxes woudl be nice, I would rather only do one set of returns. With that said, if I use the tax year for 2007 (until 12/31/07), the partnership return will have all zeros as the profit came upon the sale of the property held by the partnership in early 2008.
Any thoughts would be appreciated
the partnership has a calendar tax year.
if there was no revenue or expenses for 07, you should still file a “zero” return.
actually, in working on something else, I realized that you can modify the tax year of entities with a Form 1128. It seems like that will get me where I want to be???
the general rule is calendar year. to request a change, you must have either a) a legal basis or b) establish that your “natural” year is different from a calendar year based on 3 years’ history.
see publication 538.
you can give it a shot, but I’d be surprised if it isn’t denied.