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  2. I knew a SMLLC could be a Sub S shareholder but never imagined, or heard of a corp owning a SMLLC. Maybe there is a legal purpose, but for tax and accounting I don't see any advantage since it goes back the the owner's tax return.
  3. Today
  4. https://www.thetaxadviser.com/issues/2023/jun/single-member-llcs.html
  5. Yesterday
  6. Judy, thank you so much. That pretty well answers the question. Apparently the ordering rules are: Reduce the Earnings and Profits to the extent they exist at year-end. Reduce the Basis Report Capital Gains Great link also. Ron J.
  7. Please post a source, I don't think I have ever seen this before?
  8. I don't know why things have to be so complicated. I shall proceed.............
  9. Transfer all of the assets into the surviving LLC, re-title if need be. Transfer the cash into the surviving LLC's bank account. Assume any liabilities. Close the old LLC.
  10. According to multiple sources : "If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner's federal tax return as a division of the corporation or partnership."
  11. "Since SMLLCs are ignored for tax purposes, why not just transfer one LLC into the other and just have one entity" How exactly do I do that?
  12. A SMLLC owned by a Sub S? I don't think it works that way; a disregarded entity owned by a corporation?
  13. Have you actually tracked E&P each year and know what the accumulated E&P is? Dividends are first paid out of current and accumulated earnings and profits. Current year E&P are considered first and are determined at the close of the current year. Any distribution that exceeds the total of current and accum E&P is a return of capital and reduces shareholder's basis. Anything in excess of that is taxed as cap gain. https://answerconnect.cch.com/topic/46dee5267c6b1000a17990b11c18cbab013/earnings-and-profits-limitation-for-dividends
  14. Thanks for all comments. Very instructive. Yes there was confusion due to the introduction of basis. If there is a $1000 initial contribution of cash for capital stock in a C Corp, that should be the end of the basis it if nothing else happens to capital stock. Further income, loss, non-taxable income, non-deductible expenses should not change the basis. If the issuance of dividends is taxable to the extent of E&P, the question becomes is the measurement of E&P effective at the beginning of the year or at the end of the year??
  15. Client and Lawyer and myself want to get this into corp return and off from his personal return to give some separation, and to set up payroll for him and his wife at the corp level. He has some other business on his personal return and I feel he needs this pulled out onto a corp return. However, the first business that he took over was already set up as an LLC. The second business that he just purchased the lawyer has already got set up as an LLC. I don't want 2 separate corp tax returns - woould like 1 corp tax return to report both businesses (they are similar restaurant businesses). I'm thinking I have one of the LLCs elect to be treated as corp and the other one report as owned by the new corporation.
  16. does anyone have a cite for FBAR record retention requirements? I would assume that FINCEN will require the same for the BOI. I feel certain I read once that it was 5 years but now I can't find the source.
  17. and the concept of a pass through entity vs a fully taxable one.
  18. Suggesting to wait could be a can of worms too, such as "I could not get the information in time, since you told me to wait". Maybe a no comment is best, to avoid giving any advice which could bite. This is a "nothing burger" for most. If the persons are privacy concerned, they already have things in place to shield their personal address as much as possible. It is easy to get a compliant UPS or other virtual address if one wants (for personal), and likely the same will be or is compliant for business address (if one stretches their thinking to be comfortable stating their business records exist at the virtual address, say on a server controlled by the mailbox company - who would never give the data up anyway). The grey of where the records are is no different than pretending electronic data meets record retention rules without having to do the things electronic record retention for compliance actually requires.
  19. You are confusing S and C corps. Basis in a C does not change with non taxable or non deducible items. Nor does it change with profits or losses.
  20. I have advised my clients to wait until the fall as well. I am not doing any of their filings, but I suspected there might be some pushback in an election year and there could be a delay in implementation from legislators or the courts. But I did tell them to gather the information needed prior to that so the filing will be smoother. Tom Longview, TX
  21. Looking at what is already public, my only consideration is trying to allow anyone who wishes to not show their personal address, which so far, seems possible. Also making sure each person creates their own ID so they are the ones who decide what is included. Our CA annual form almost went in last year with addresses some wanted to keep private. It is a constant battle.
  22. I have decided to wait until October or November due to the legal challenges. Another legal challenge has been filed in federal courts in Michigan.
  23. I agree. I had a client in this situation but he is now retired from his regular job. Yes, he's receiving SS. I agree that most don't really know what they're signing, just saving money. I recommend they pay and receive it. I have a retired minister who paid thru the years and is now receiving a nice amount from SocSec.
  24. I agree. I did this with the foreign accounts reporting. I'll do the Form 8938 with the return but not the online FinCen reporting. I plan to look into the new FinCen reporting and let my clients know about it but it will up to them to do it.
  25. Not true. Stock could have been purchased, inherited, or gifted. That is important because distributions in excess of E and P are are subject to capital gains and offset by basis. Those statements show a lack of understanding that a basic course would cover. That is correct, I assumed cash basis.
  26. For an ongoing business, this would be true. If the company was liquidated, assets would be zero, liabilities would be zero and different equity accounts would need to net to zero, not a negative amount.
  27. Darlene, I would love to have gone there. Sorry to miss. Neighboring Chippewa Falls is one of my favorite places on earth.
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