When closing the Sch C business, the instructions you gave are for Turbo Tax Self Employed, correct??
What I provided you in this thread are *NOT* step by step or click for click instructions. They are "GUIDANCE" on exactly what you need to do in order to close your SCH C business.
Then, since I converted to S-Corp effective on Jan 1 2019, technically the last day of business on my Single Member LLC was Dec 31, 2018.
If you did not follow the guidance I provided above on your 2018 tax return to close your business on Dec 31 of 2018, then as far as the IRS is concerned that business was still open as of Jan 1, 2019.
So would that mean all that I would start a new tax return for 2019 and just list the assets disposed of as of Dec 31, 2018??
Only if you completely and correctly closed the business on your 2018 return. If you did not, then you have two choices.
1) Amend your 2018 tax return to show your SCH C business closed on Dec 31 2018.
2) Report the closure of your SCH C business on Jan 1, 2019 on your 2019 return. (If you take this option, then the incorporation date for your S-Corp *MUST* be Jan 2 2019 or after. )
And for the 1120S (S-corp return and K-1), I would need Turbo Tax Business, correct?,
Correct. For others reading this thread take note: TurboTax Business is not available as an online product, and is not available for MAC computers. It's for the Windows operating system *ONLY*.
And lastly, when all is said and done and I have the K-1, I'll go back to whatever version on TT personal software and file my personal returns, correct?
Correct. It is physically impossible for you to complete your personal return until you have the K-1 issued to you by the S-Corp.
Of course, waiting to e-file both the business and personal returns and do them at the same time, correct?
Yes. If you file one early, (such as the 1120-S) and then discover later there's a mistake, you then have to amend the 1120-S, issue a "corrected" K-1 and deal with that. Avoid these headaches and don't be in such a hurry. One point of interest note here though.
Your 1120-S corporate return is due to the IRS by March 15th, and not Apr 15th as your personal return is. The late filing penalty for a late corporate return is $200 per month, per owner. So with only one owner if you e-file on March 16th you'll have a $200 late filing penalty. So start early, take your time, and do your best to not go there.
