Atlanta CPA: Understanding Tax Dynamics of Entity Selection
Atlanta CPA: Understanding Tax Dynamics of Entity Selection
Evaluating Partnerships, LLC’s and S Corporations
Below is a sample letter that we might receive off of our web site about a tax question for a new business that has recently incorporated:
I have a question I hope you can help me with based on your articles on the Web about and partnership law. In 2009 a client organized as an LLC – taxed as a general partnership with US individuals as partners. In 2010 we would like to advise them to convert to an S-Corporation by filing form 2553 to be taxed as an S Corporation.
One partner is concerned there may be “recapture” of prior depreciation under or the loss of future depreciation or amortization under if this entity ceases to be a partnership and elects to be an S Corporation.
My conclusion is : No The entity continues as is Continue to depreciation / Amortize the assets including the 754 basis adjustment. Can you confirm or provide guidance? Thank you
Below is my response:
Thanks for visiting www.HisCPA.com I recommend you use a CPA firm for all of your business returns.
If you are looking for a new CPA firm please send along to the below address copies of the impacted returns along with your contact information and a small retainer and I will be happy to help. I have learned many times over again that not using a CPA firm for your business returns is a recipe for overpaying your corporate income taxes. The complexities of IRS tax law, the many deadlines and variances may cause many to fail by the wayside to ensure that they pay only their lowest legal possible tax. Not using a CPA is similar to one performing their own major surgery which is almost guaranteed to cause their patient undue harm.
“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”
John Dillard, CPA of His CPA, PC (A Duluth CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision.
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.
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