Question

My company changed tax entities on 9/1/18. Do I have to file as an s-corp for Jan - Aug, then split income / expenses for Sep - Dec and put on schedule C?

Forum|Forum|7 years ago
June 3, 2019
1 reply
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My LLC was taxed as an s-corp until 9/1/18 when the IRS approved a change to a disregarded entity. Must I file an 1120s for the 8 months, then determine the income/expenses from September to December to report as a sole-proprietor / schedule for C Sep-Dec?

J

JulieCo

Employee

Yes, create and file the S Corp return for the 8 months and include the income and expenses on it for that period of time. (Note that S Corp returns were due by March 15,2019.) Then report the income and expenses for the remainder of the year on Schedule C of your tax return.

R

robert4Author

From a QuickBooks perspective, should I close the company on 8/31/18 and start a "new" company on 9/1/18? The good news is I am switching from Desktop to Online, so this may be a good cutoff point to do it.