Prof Corp to LLC

[imjulier]

Seems like I should know this but I have been up all night....had to put down my 14 year old dog last night which was just a little sooner than I thought. So sad, she was a great dog. Are there any adjustments to make in going from a PC to LLC filing Sch C? I am only familiar with built in gains in going from a C corp to S corp and only at time of sale of the assets. I think that does not apply to this situation. Any other considerations on transferring the assets? They are fully depreciated (some with bonus depr taken) and another preparer did the final return for the PC. I'm thinking about just not transferring them over to the Sch C. Anyone know anything different? It is a small amount of assets anyway.

Thanks,

Julie

[Lion EA]

Dissolutions always perplex me. But, I wanted to say I'm sorry for your loss. Our animals are part of our families, so their loss takes a toll on us while we mourn. Be nice to yourself. Feel all our warm thoughts and prayers coming your way.

[jklcpa]

 

Seems like I should know this but I have been up all night....had to put down my 14 year old dog last night which was just a little sooner than I thought. So sad, she was a great dog. Are there any adjustments to make in going from a PC to LLC filing Sch C? I am only familiar with built in gains in going from a C corp to S corp and only at time of sale of the assets. I think that does not apply to this situation. Any other considerations on transferring the assets? They are fully depreciated (some with bonus depr taken) and another preparer did the final return for the PC. I'm thinking about just not transferring them over to the Sch C. Anyone know anything different? It is a small amount of assets anyway.

 

Thanks,

Julie

 

You would have a dissolution of the C corp. Here is a link to a very good article from the AICPA entitled "Now Is the Time - Converting a C Corporation to an S Corporation" that explains the issues:

http://www.aicpa.org/publications/taxadviser/2012/august/pages/lynch_august2012.aspx

The title makes it sound like it only covers C to S corps, but the pertinent discussion of C to LLC that would apply to your situation starts on page 6 of the file and in the document is labeled page 7 because the file created a blank page at the start that I deleted.

 

Edited April 30, 2015 by jklcpa
added link to article instead of pdf upload

[Margaret CPA in OH]

Julie,

I am so sorry about your loss. I, too, have lost pets too many times. Always bad, really bad during this season.

[imjulier]

Judy-

Thanks for the great article. And thanks to others for your well wishes.