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Sch C to 1120S


JackieCPA

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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

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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.

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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.

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