topic How do I properly record converting an LLC into a C Corporation in TurboTax? in Business & farm https://ttlc.intuit.com/community/business-taxes/discussion/how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273387#M43000 I converted my LLC to a C Corporation during 2019. When filling the K-1 entry in TurboTax, I checked "This partnership ended in 2019", followed by "Disposition was not a sale". <BR /><BR />However, on the next page it asks me to fill in the Purchase Date and Sale Date. I just said it wasn't a sale! <BR /><BR />Should I put Purchase Date and Sale Date as the date of conversion? Wed, 04 Mar 2020 23:38:45 GMT accounts-mint 2020-03-04T23:38:45Z How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273387#M43000 I converted my LLC to a C Corporation during 2019. When filling the K-1 entry in TurboTax, I checked "This partnership ended in 2019", followed by "Disposition was not a sale". <BR /><BR />However, on the next page it asks me to fill in the Purchase Date and Sale Date. I just said it wasn't a sale! <BR /><BR />Should I put Purchase Date and Sale Date as the date of conversion? Wed, 04 Mar 2020 23:38:45 GMT https://ttlc.intuit.com/community/business-taxes/discussion/how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273387#M43000 accounts-mint 2020-03-04T23:38:45Z Re: How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273489#M43005 <BLOCKQUOTE><HR /><LI-USER uid="1535057"></LI-USER>&nbsp;wrote:<BR />I converted my LLC to a C Corporation during 2019. When filling the K-1 entry in TurboTax, I checked "This partnership ended in 2019", followed by "Disposition was not a sale". <BR /><HR /></BLOCKQUOTE> <P>Who prepared the 1065 for your LLC?</P> <P>&nbsp;</P> <P>Your K-1 should indicate that it is a final K-1 and, typically, a short tax year ending at a certain date in 2019 since the LLC terminated.</P> <P>&nbsp;</P> <P>You can also select "No entry" for a disposition.</P> Wed, 04 Mar 2020 23:56:03 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273489#M43005 tagteam 2020-03-04T23:56:03Z Re: How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273654#M43010 <P>Thanks for the reply. The 1065 was prepared by the company's accountants.&nbsp;</P><P>&nbsp;</P><P>The K-1 does indicate that it is final, and shows a short tax year.</P><P>&nbsp;</P><P>However, TurboTax asks for a "Purchase Date" and "Sale Date" -- what should I enter for those?</P><P>&nbsp;</P><P>Is "no entry" better than "not a sale"? I don't understand what these choices actually do.</P> Thu, 05 Mar 2020 00:24:17 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273654#M43010 accounts-mint 2020-03-05T00:24:17Z Re: How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273674#M43011 <P>Also, converting an LLC to a C corp may trigger a taxable event. You should have been tracking your basis in the LLC and when converted should now become your basis in the C corp except of course you contributed additional capital.</P> Thu, 05 Mar 2020 00:27:26 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273674#M43011 VictorW9 2020-03-05T00:27:26Z Re: How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1274389#M43033 <P>Keep in&nbsp; mind also for the S-Corp that the business start date is the same exact date the partnership was started -even if in a prior year. But the "incorporation" date is the day after the partnership was terminated. It's important to understand that, or asset depreciation will be thrown out of whack.</P> <P>&nbsp;</P> Thu, 05 Mar 2020 02:30:06 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1274389#M43033 Carl 2020-03-05T02:30:06Z Re: How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1274890#M43048 <P>Thanks for the tip.</P><P>&nbsp;</P><P>Under what circumstances would it trigger a taxable event?<BR /><BR />Wouldn't whatever tax obligations I have be reported on the K-1?</P><P>&nbsp;</P> Thu, 05 Mar 2020 04:12:10 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1274890#M43048 accounts-mint 2020-03-05T04:12:10Z Re: How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1274901#M43049 <P>It's a C corp, not an S corp.</P><P>&nbsp;</P><P>I'm just trying to understand what Turbotax wants for the "Purchase date" and "Sales Date'.</P><P>&nbsp;</P><P>Like, what is asking for?</P><P>&nbsp;</P><P>Are you saying that you think that "purchase date" = "business start date" and "sale date" = "conversion date"?</P><P><BR />How does this affect asset depreciation?</P><P>&nbsp;</P> Thu, 05 Mar 2020 04:14:26 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1274901#M43049 accounts-mint 2020-03-05T04:14:26Z Re: How do I properly record converting an LLC into a C Corporation in TurboTax? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1276220#M43072 <BLOCKQUOTE><HR /><LI-USER uid="1535057"></LI-USER>&nbsp;wrote: <P>I'm just trying to understand what Turbotax wants for the "Purchase date" and "Sales Date'.</P> <HR /></BLOCKQUOTE> <P>You can actually leave those fields blank as long as you have indicated you disposed of the property and entered a date for the disposition.</P> <P>&nbsp;</P> <P>When you transfer your 2019 return to your 2020 return (next year), the asset will not appear.</P> Thu, 05 Mar 2020 15:53:43 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1276220#M43072 tagteam 2020-03-05T15:53:43Z
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topic How do I properly record converting an LLC into a C Corporation in TurboTax? in Business & farm
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https://ttlc.intuit.com/community/business-taxes/discussion/how-do-i-properly-record-converting-an-llc-into-a-c-corporation-in-turbotax/01/1273387#M43000
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I converted my LLC to a C Corporation during 2019. When filling the K-1 entry in TurboTax, I checked "This partnership ended in 2019", followed by "Disposition was not a sale". <BR /><BR />However, on the next page it asks me to fill in the Purchase Date and Sale Date. I just said it wasn't a sale! <BR /><BR />Should I put Purchase Date and Sale Date as the date of conversion?
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How do I properly record converting an LLC into a C Corporation in TurboTax?
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I converted my LLC to a C Corporation during 2019. When filling the K-1 entry in TurboTax, I checked "This partnership ended in 2019", followed by "Disposition was not a sale". <BR /><BR />However, on the next page it asks me to fill in the Purchase Date and Sale Date. I just said it wasn't a sale! <BR /><BR />Should I put Purchase Date and Sale Date as the date of conversion?
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Re: How do I properly record converting an LLC into a C Corporation in TurboTax?
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<BLOCKQUOTE><HR /><LI-USER uid="1535057"></LI-USER>&nbsp;wrote:<BR />I converted my LLC to a C Corporation during 2019. When filling the K-1 entry in TurboTax, I checked "This partnership ended in 2019", followed by "Disposition was not a sale". <BR /><HR /></BLOCKQUOTE> <P>Who prepared the 1065 for your LLC?</P> <P>&nbsp;</P> <P>Your K-1 should indicate that it is a final K-1 and, typically, a short tax year ending at a certain date in 2019 since the LLC terminated.</P> <P>&nbsp;</P> <P>You can also select "No entry" for a disposition.</P>
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Re: How do I properly record converting an LLC into a C Corporation in TurboTax?
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<P>Thanks for the reply. The 1065 was prepared by the company's accountants.&nbsp;</P><P>&nbsp;</P><P>The K-1 does indicate that it is final, and shows a short tax year.</P><P>&nbsp;</P><P>However, TurboTax asks for a "Purchase Date" and "Sale Date" -- what should I enter for those?</P><P>&nbsp;</P><P>Is "no entry" better than "not a sale"? I don't understand what these choices actually do.</P>
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Re: How do I properly record converting an LLC into a C Corporation in TurboTax?
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<P>Also, converting an LLC to a C corp may trigger a taxable event. You should have been tracking your basis in the LLC and when converted should now become your basis in the C corp except of course you contributed additional capital.</P>
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Re: How do I properly record converting an LLC into a C Corporation in TurboTax?
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<P>Keep in&nbsp; mind also for the S-Corp that the business start date is the same exact date the partnership was started -even if in a prior year. But the "incorporation" date is the day after the partnership was terminated. It's important to understand that, or asset depreciation will be thrown out of whack.</P> <P>&nbsp;</P>
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Re: How do I properly record converting an LLC into a C Corporation in TurboTax?
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<P>Thanks for the tip.</P><P>&nbsp;</P><P>Under what circumstances would it trigger a taxable event?<BR /><BR />Wouldn't whatever tax obligations I have be reported on the K-1?</P><P>&nbsp;</P>
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Re: How do I properly record converting an LLC into a C Corporation in TurboTax?
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<P>It's a C corp, not an S corp.</P><P>&nbsp;</P><P>I'm just trying to understand what Turbotax wants for the "Purchase date" and "Sales Date'.</P><P>&nbsp;</P><P>Like, what is asking for?</P><P>&nbsp;</P><P>Are you saying that you think that "purchase date" = "business start date" and "sale date" = "conversion date"?</P><P><BR />How does this affect asset depreciation?</P><P>&nbsp;</P>
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Re: How do I properly record converting an LLC into a C Corporation in TurboTax?
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<BLOCKQUOTE><HR /><LI-USER uid="1535057"></LI-USER>&nbsp;wrote: <P>I'm just trying to understand what Turbotax wants for the "Purchase date" and "Sales Date'.</P> <HR /></BLOCKQUOTE> <P>You can actually leave those fields blank as long as you have indicated you disposed of the property and entered a date for the disposition.</P> <P>&nbsp;</P> <P>When you transfer your 2019 return to your 2020 return (next year), the asset will not appear.</P>
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