How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3761
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

Hi, I incorporated a side business Id been running at home,

Resolved Question:

Hi, I incorporated a side business I'd been running at home, a business that has accrued an amount of losses I've yet to be able to claim due to insufficient income. So, when I fiel next year, I will include information on the company (an LLC). My question is, can I show a payment from the LLC to the side company to "buy" the losses, so I can use them to offset income? This would "zero out" the side business and I would not have to file another return featuring it.
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

NPVAdvisor :

Hi,

Customer:

Hi

NPVAdvisor :

Le me make sure I understand ... YOU have both a C-Corp and an LLC? ... or is the LLC the one you're referring to (with the side business being a sole proprietorship possibly?)

Customer:

Not even a "C" corp- the side business had an EIN but I showed its losses on the schedule C

Customer:

i am now going to get serious so i formed an LLC

NPVAdvisor :

Ah, ok that one was a sole proprietorship then

Customer:

i will have revenues

Customer:

yes sole proprietor

Customer:

i don't want to lose the losses i accrued

Customer:

since this is a continuation of that business

Customer:

so i want to write a check from the LLC's account to my personal account in the amount of the losses

NPVAdvisor :

OK both single member LLCs and sole proprietorships are considered disregarded entities (both income an loss (FOR both) flow from the schedule C to line 12 on your 1040 (business nincome or loss)

Customer:

saying it's for intellectual property or some such

Customer:

so they are automatically aggregated?

NPVAdvisor :

There's really no need to do that as it is you that had the net operating loss all along

Customer:

ok so next year when i include the LLC and it's new EIN

NPVAdvisor :

yes, nothing really changed TAX WISE when you formed the LLC (not in terms of its effect on you) you just now have that liability protection

Customer:

i can carry forward the losses from the sole proprietorship and show them

Customer:

right thanks i hear you loud and clear

Customer:

it's just that there's that line on the form about carrying forward losses

Customer:

and i didn't want the IRS to freak out and say "there are no losses from last year for the EIN

Customer:

so what you're saying it it's all really just based on my social security number

NPVAdvisor :

Since this is a personal net operating loss, you'll do ot on form 1045

NPVAdvisor :

the net effect is ... thats right

NPVAdvisor :

for two disregarded entites

Customer:

ok thanks

Customer:

enjoy the holiday

NPVAdvisor :

YW

NPVAdvisor :

f this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

NPVAdvisor :

You toop!

NPVAdvisor :

(too)

NPVAdvisor :

:)

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3761
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and other Tax Specialists are ready to help you
Expert:  Lane replied 11 months ago.


Thanks Clayton

Lane

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.