SE to LLC to S Corp

[jumper789]

I prepare my daughter and son-in-laws taxes, but they are complicated this year.  He started a house flipping business and bought and sold the first house under his name and SSN so it would be on Schedule C.  He formed a LLC and bought and sold the second house.  Would this go under a separate Schedule C under the business name and EIN? He then filed the papers to make the LLC a S Corp.  He bought and sold 2 more house that would be included on form 1120S.  He received a 1099S and state taxes were withheld on the first 2 houses but not the other two.  We are in California.  Is this the correct way to account for the 4 sales?

[Anonymous_ · Accepted solution]

You may be on the right track, generally, but you really should consider using a tax professional for this tax year (or, rather, tell your daughter and son-in-law to do so).

https://taxexperts.naea.org/listing/service/individual-tax-preparation

Actual preparation of tax returns notwithstanding, there are issues with taking a (reasonable) salary for your son-in-law as well as quarterly withholding (Form 941) which might not have been done. 

Since this is California, there are likely also state issues. 

Guidance from a local tax professional would be highly recommended in this instance.