How do I account for a truck that was used for my business as a sole proprietorship but then also continued to be used for my same business once I became a single member LLC?

Since the LLC has it's own EIN, I'm assuming that I need to enter the 2021 income and expenses for each classification of business as two separate businesses on TT (I was sole proprietor for Jan. and Feb., then formed the LLC in March.) I just kept using the same truck, though. Do I enter it as being "sold" for $0 on the sole proprietorship Sch. C and then just add it as a vehicle on the LLC?

670

Level 15

Jan 22, 2022 9:56:29 AM

a single-member LLC is a disregarded entity so continue to use the same schedule C (unless your sole proprietorship and LLC engaged in different business activities) you used as a sole proprietorship just enter the EIN on Schedule C.

New Member

Jan 22, 2022 11:29:45 AM

Ok, I guess that makes sense, now that I think about it. I knew about the disregarded entity aspect, but was getting caught up on the difference in business structure and the income made under the EIN vs. SSN. I realize now that the IRS will still view it as all the same, though, as far as taxes are concerned. Thanks!

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How do I account for a truck that was used for my business as a sole proprietorship but then also continued to be used for my same business once I became a single member LLC?