JackieCPA Posted January 29, 2019 Report Posted January 29, 2019 Is there a way to transfer a Schedule C's assets to a 1120S return in ATX? The customer service I talked to had no idea why I would want to do that because "someone who has a schedule C can't make the S-election"... as he put it. 1 Quote
BulldogTom Posted January 29, 2019 Report Posted January 29, 2019 The person you talked to was correct. But assuming your client was a sole proprietor and has now formed a corporation that made an S election and then contributed to the corporation the assets that he held as a sole proprietor... then you would possibly want to move the assets. And I don't know if it is possible to export the assets from one tax return and move them to another return, but I doubt it. ATX has been trying to get everyone to buy up to their fancy fixed asset program, so any type of functionality like that would probably be extra. How many assets are you talking about? Tom Modesto, CA Quote
Lion EA Posted January 29, 2019 Report Posted January 29, 2019 Or, if the Schedule C is an LLC making the S election... 5 Quote
JackieCPA Posted January 29, 2019 Author Report Posted January 29, 2019 LLC who made the S-election. He has a lot of assets! 1 Quote
EricF Posted January 29, 2019 Report Posted January 29, 2019 The person on the ATX support line should not be making sweeping tax pronouncements like "someone who has a schedule C can't make the S-election." BulldogTom is correct that generally the sole proprietor can form a corporation to make an S election. But also, if he formed an LLC that was treated as a disregarded entity reported on a Schedule C, he can file Form 8832 to change it to a corporate entity and elect S status. Quote
Lion EA Posted January 29, 2019 Report Posted January 29, 2019 Form 2553 is what an LLC files to make the S-election. Quote
Lynn EA USTCP in Louisiana Posted January 29, 2019 Report Posted January 29, 2019 Have you tried duplicating the return, deleting the 1040 in the second copy, and adding the 1120S? 5 1 Quote
JackieCPA Posted January 29, 2019 Author Report Posted January 29, 2019 That is a really great idea Lynn! I never thought of that! Thanks! Quote
North Idaho Rich Posted January 29, 2019 Report Posted January 29, 2019 It has worked in the past to just add the 1120-S and the software will inform you that only one signature form is allowed and would you like to replace the 1040 with the 1120-S. It then makes the switch for you and your assets have been effectively moved. I've done this a few times in the past and hopefully it still works. 3 Quote
Evan S. Golar Posted January 29, 2019 Report Posted January 29, 2019 Has everyone forgotten that despite your wizardry in computer technology- there needs to be a Section 351 incorporation process with the IRS in order for it to be officially correct? 1 Quote
Abby Normal Posted January 29, 2019 Report Posted January 29, 2019 ATX needs to improve their Knowledge Base. It took my 5 different tries to find the right words for the solution to this problem and it only refers to 1040 to a 1041: https://support.cch.com/sfs#q=copy fixed assets to another return&t=All&sort=relevancy&f:@commonproduct=[ATX™] Quote
JackieCPA Posted January 29, 2019 Author Report Posted January 29, 2019 6 hours ago, Evan S. Golar said: Has everyone forgotten that despite your wizardry in computer technology- there needs to be a Section 351 incorporation process with the IRS in order for it to be officially correct? Section 351 does not apply in this situation. Quote
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