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In 2011 we converted our business from a Partnership to a LLC

In 2011 we converted our...

In 2011 we converted our business from a Partnership to a LLC The nature of the business is to buy, rent, and sell real estate. We used the same EIN from the Partnership when we formed the LLC, and by default, we electing to be taxed as a Partnership on the federal and state tax return for the LLC. Our reason for maintaining the same EIN number was, hopefully, to avoid filing two separate 1065 Forms with the IRS, and also to continue depreciating the assets listed in the partnership without having to close-out all of the depreciated items and re-list them in the LLC. Can we file one form 1065 and include the organizational fees payed to the State as well as other expenses incurred in setting up the new LLC, or do we have to file a 1065 for the old partnership as well as for the new LLC?

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Answered in 23 minutes by:
11/2/2012
WebCPA
WebCPA, Tax Accountant
Category: Tax
Satisfied Customers: 111
Experience: Licensed CPA. 10+ years experience.
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Welcome and thank you for your question. I'll do my best to provide an informative answer. Please let me know if you need any clarification.

 

Good news - you did not screw-up. You can still file a partnership under the original EIN. And yes, you can include the organizational fees paid to the state as well as other related expenses on the LLC tax return. Only one return is needed, and all depreciation will continue on as if nothing ever changed. You may want to check the "name change" box on the 1065 to indicate the new name (now ending in ", LLC").

 

You may find this link helpful as well:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Do-You-Need-a-New-EIN%3F

 

Please let me know if you need additional clarification.

Kind regards

WebCPA
WebCPA, Tax Accountant
Category: Tax
Satisfied Customers: 111
Experience: Licensed CPA. 10+ years experience.
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