topic TTS business in Get your taxes done using TurboTax

TTS business

mw30 — Tue, 04 Aug 2020 21:29:20 GMT

Dear Sir,

I am qualified as TTS. I already formed LLD and as trader tax situation. Do I need to get section 475? I know the deadline is Apr 15. where do I get that section 475?

Re: TTS business

Anonymous_ — Tue, 04 Aug 2020 21:46:38 GMT

@mw30 wrote:

Do I need to get section 475?

If you want to be subject to the mark-to-market rules then you need to make the election.

You can make the election by attaching a statement either to your income tax return if filed without an extension or to a request for an extension of time to file your return. The statement should include the following information:

That you're making an election under section 475(f);
The first tax year for which the election is effective (that is, the tax year for which a timely election is being made); and
The trade or business for which you're making the election.

See https://www.irs.gov/taxtopics/tc429

If you are serious about this option, you should seek professional tax guidance.

Re: TTS business

mw30 — Wed, 05 Aug 2020 00:21:14 GMT

Thank you very much for your feedback.I wonder which turbo tax program do I use if I file S corp? What about my personal taxes? Do I need to prepare two different turbo tax to get my personal taxes done?

Re: TTS business

Anonymous_ — Wed, 05 Aug 2020 00:27:10 GMT

@mw30 wrote:

Do I need to prepare two different turbo tax to get my personal taxes done?

Yes. You would need to use TurboTax Business (link below) to prepare a Form 1120-S for your S corporation and then use another TurboTax product, such as TurboTax Premier, to prepare your personal income tax return.

https://turbotax.intuit.com/small-business-taxes/

Note that TurboTax Business must be installed and run in a Windows environment; there is no online or Mac version. Also note that you should consider using a tax professional if you are not familiar with accounting principles for entities or return preparation.

Re: TTS business

mw30 — Wed, 05 Aug 2020 03:26:38 GMT

That explanation is quite clear, Thank you. Another question about personal income, since I don't have any other personal income except the rental income which I receive 1099 misc form once a year. I filled schedule C for the cost. Will this go to S corp to report income or fill in a personal income tax return? I used to use LLC(own one personal) to report tax return but this year I plan to use Scorp so that bring up these questions.

Re: TTS business

mw30 — Wed, 05 Aug 2020 16:35:46 GMT

I am used turbo tax business for S corp as trader tax status, but I also have 1099 misc for rental income which will go to schedule C. Can I also put this income in S corp and use turbo tax business together? thanks. If I don't have personal income do I need to report personal income tax? Thanks

Re: TTS business

Anonymous_ — Wed, 05 Aug 2020 16:47:40 GMT

@mw30 You cannot report personal income on the 1120-S that you would prepare for your S corporation; personal income is reported on Form 1040 and TurboTax Business cannot be used to prepare a 1040.

As an aside, why are you reporting rental income on Schedule C? In most instances, rental income is reported on Schedule E (obviously, there are exceptions).

I firmly believe you should seek professional tax guidance.

Re: TTS business

Anonymous — Wed, 05 Aug 2020 16:56:29 GMT

is the rental property owned by the S-Corp? what is being rented since there is no schedule C for an S Corp?

Re: TTS business

mw30 — Wed, 05 Aug 2020 18:01:46 GMT

No. S corp is for trading tax status. Not include in S corp. The only reason I am asking cause I receive a 1099 misc form and it should be reported in schedule either C or schedule E. If so which kind of turbo tax I should be prepared for personal income?

Re: TTS business

Anonymous_ — Wed, 05 Aug 2020 18:09:35 GMT

@mw30 wrote:

The only reason I am asking cause I receive a 1099 misc form and it should be reported in schedule either C or schedule E.

Rental income is generally reported on Schedule E. However, as noted previously, there are exceptions.

If you post more details concerning the nature of the rental income, suggestions can be more accurate and precise. Otherwise, you really need to consult, in person, with a tax professional.

Re: TTS business

mw30 — Wed, 05 Aug 2020 18:13:36 GMT

Sorry, I might confuse you. This rental income has nothing to do with S corp. I used LLC to report my personal income tax for 5 years. Since I plan to use S corp to file income tax. I understand that I need to report business income and personal income separately. Then I am not sure what turbo tax software I should use to report 1099 misc form for personal income tax. Thanks

Re: TTS business

mw30 — Wed, 05 Aug 2020 19:03:17 GMT

Thank you so much for your patient. I own a condo inside a resort hotel type. It is a Commerical type, the hotel helps to rent out and take 1/3 of revenue. By the end of the year, they send a 1099 misc form to me. I think it is a sole priority and fill as schedule c. Buy this year I plan to report as S corp instead of LLC. So as of personal income tax, that is my own income so I don't know what turbo tax software name I should use. Can you please give me so advice?

Re: TTS business

Anonymous_ — Wed, 05 Aug 2020 19:23:32 GMT

@mw30 wrote:

.......I am not sure what turbo tax software I should use to report 1099 misc form for personal income tax.

If you are planning to use a desktop (installed) version of TurboTax, you can use any version. However, since you will have a K-1, I would recommend using TurboTax Premier since it offers more guidance in Step-by-Step mode.

As noted earlier, you should consider professional tax guidance for your situation.

EDIT: Based upon your latest post, I would recommend that you use Home & Business for your personal income tax return. I continue to assert that someone with your level of tax knowledge and with your tax scenario should use a tax professional.

Re: TTS business

mw30 — Fri, 28 Aug 2020 02:37:26 GMT

Hello,

I am planning to elect the LLC (only one person )tax as S corp this coming year. My question is that I have transferred some cash to my LLC stock trading account and I made some money. How the IRS knows that the money that makes includes some of the money I have funded to my account. It is the difference between the beginning balance Jan 1st of the year and the end of Dec 31st. I just wonder if I have some money to my LLC trading account that will be a double tax for the part of the money I funded. Thank you much!