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Discussion Forum Index --> Basic Tax Questions --> Single Member LLC to S Corp
Discussion Forum Index --> Tax Questions --> Single Member LLC to S Corp
Lrussell (talk|edits) said:
| 1 September 2009
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| Client filed form 2553 to elect to be taxed as s corp. Client's LLC previoiusly filed schedule C. Does retained earnings start over effective 1/1/08 when S-corp became effective?
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Tdh555 (talk|edits) said:
| 1 September 2009
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| Yes...run a balance sheet at that date and record a Sec 351 transfer to S corp. Attach this statement to first year 1120S.
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Lrussell (talk|edits) said:
| 1 September 2009
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| Thank you. I prepared the statement, no-one knows what the FMV of the property was, difficult to know exactly, but I don't think it is much different than adjusted basis. Would you think it would make a difference if we just put the FMV to equal the adjusted basis if it is (1) unknown and (2) seemingly immaterial
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JR1 (talk|edits) said:
| September 1, 2009
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| No no no no! You just roll the existing balance sheet, you don't up to FMV. See my answer to your other question on the other thread as to the equity section.
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