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Level 1
posted Apr 11, 2021 9:42:45 AM

Transition from Schedule C to LLC

Hello,

I have had a business since 2018. In 2018 and 2019, it was a Schedule C business. January 1, 2020, we converted it to a Multi-partner LLC. I have carryover home office expenses from 2018 and 2019. Can I apply those to the LLC in 2020? Also, what do I use for the "Date business began" in TurboTax... 2018 or 1/1/20?

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2 Replies
Expert Alumni
Apr 11, 2021 10:43:12 AM

Assuming that you are now reporting as a partnership on IRS Form 1065.  Please clarify.  This article states:

 

Your sole proprietorship’s assets and liabilities generally will transfer directly to your new SMLLC without your needing to take any further steps.

 

If you are referring to Form 1065, disclosure E for 'date business began', use 'January 1, 2020'.

 

Level 1
Apr 11, 2021 10:45:19 AM

Yes, we are now reporting as a partnership on Form 1065. Thank you for the information!