Legal Question in Tax Law in New Jersey

This gets a little complicated, if the effective date of the withdrawal is not at the end of the year or the first day of the new year. This is handled by the filing of Schedules K-1 to the Form 1065 and showing the date of withdrawal and that this is the final K-1 for that person. If the withdrawal date is other than the last day of the year or the first of the new year (really the last day of the prior year), the profit/loss has to be pro-rated to their percentage ownership for that portion of the year they were still members of the LLC.