LLC to S-Corp change

Forum|Forum|3 years ago
November 30, 2022
1 reply
29 views

I am looking for advice on some questions below.

1. I have a car that was listed for business use and am in its third years of depreciation. What happens if I were to sell of that car and replace it with a different car in the middle of the fourth year? What do I enter when filing my tax?

2. How long does it take for the IRS to complete a change request from an LLC to S-Corp status?

3.Supposing the change was granted in November, does that mean the filing from January to October will be filed as an LLC and from November to December as an S-Corp?

Thank you.

Best answer by Anonymous_

With respect to the car, you have to treat the transaction as an outright sale; you can no longer use like-kind exchange treatment after tax reform (the TCJA).

The time period varies but is usually less than 90 days (in most cases within 30-60 days).

With respect to the effective date, refer to the information at the link below.

https://www.irs.gov/instructions/i2553#idm139855003794080

Anonymous_Answer

Level 15

With respect to the car, you have to treat the transaction as an outright sale; you can no longer use like-kind exchange treatment after tax reform (the TCJA).

The time period varies but is usually less than 90 days (in most cases within 30-60 days).

With respect to the effective date, refer to the information at the link below.

https://www.irs.gov/instructions/i2553#idm139855003794080