Dual status and foreign disregarded entity (8858) - accounting period

[raggedyak]

I worked in the UK through a UK sole member LLC, then emigrated to the US in mid-2023. I am now a US permanent resident but I was not prior to emigrating.

I am going to file as a dual status resident, i.e. 1040 for the period after I arrived in the US and 1040NR for when I was a non-resident.

Some of the UK income was not paid to the UK LLC until after I arrived in the US, so I'm trying to figure out how to file.

I am probably going to elect to treat the UK LLC as a foreign disregarded entity (FDE) using form 8832.

This means I need to complete form 8858 for the profit/loss of the FDE.

The instructions of 8858 seem to ask me to report for the full US accounting year, which leaves me with considerable self employment income that I believe will flow through to my 1040.

But most of that income was earned prior to emigrating and so is not taxable under dual status rules (it's not US connected income).

What should I do with the 8858? Report only the numbers relating to the dates after my arrival in the US?

Anyone else navigated dual status and 8858 before?

Thanks.

[DaveF1006]

Form 8858 is a form not supported by Turbo Tax so information that you would place in this form should not populate in Schedule C. You can download the form here.

Since you are filing as a Dual-Status citizen, you will need to print and mail your return. Based on this fact, I would suggest to report the information on the 8858 for the full accounting year. You might include a written statement in your return that you are disclosing reporting the 8858 for the full accounting year but your Schedule C income only reflects income you earned as a US citizen.  This should be evident though means you are filing as a dual-status citizen but an additional statement should clarify your position. 

Please read the link I have included below from Turbo Tax on how to file as a dual-status citizen.

Filing as a Dual-Status Citizen