Welcome Guest. Register Now!  


For 2014 Tax Tips For Year 2014.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-31-2015, 03:49 PM
Junior Member
 
Join Date: Jan 2015
Posts: 1
Unhappy mid-year business owner change help!

I am trying to figure out how I prepare w2s and file taxes....
The company was "sold" between father and son august 2014 for $0.00 so I'm not sure if it can be considered sold... basically the NOL was so high for several years the IRS said we are technically a hobby.... so there was no money exchange since the company had negative equity.

The new owner/son applied for an LLC (single member), applied for a new EIN, State ID, Sales Tax ID, EVERYTHING. So it technically wasn't a sale, it was ending one business and starting a new one. So how do I do taxes?

Already prepared W2 for the new owner up to his last payday as an employee and recorded all member draws from the date his business started. Both new and old owner, to my understanding, will just file a 1040 with Schedule C since a single member LLC and Sole Proprietorship are both considered disregarded entities. We did not choose the S Corp election since the financial situation isn't ideal.

I have recorded all member draws for the old business owner up to him retiring/selling(?) his business. I know he needs to file a 1040/Sched C and include his member draws/social security income but does he claim the NOL for the time he ran the business? Or can the new owner carry over the previous company's loss as well as the loss for the second half of the tax year???


I am trying to do what is best for BOTH parties as they are relatives. But ultimately, what's best for the new business if we must choose.

I will be hiring a tax professional, but I really need an opinion because I have gotten so many different instructions even from different CPAs and tax professional offices.. I tried researching but these tax laws and instructions are so convoluted!!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Business Loss, does that change wife's ss withholdings? BJH1 For 2014 0 01-07-2015 05:16 PM
How does a Taxpayer notify the IRS of any address change that occurs during the tax year?? TaxGuru General 0 11-10-2014 04:11 PM
Selling a Business (15% owner) jtman Limited Liability Company 0 08-01-2014 10:21 AM
I need help balancing a small business loss this year and using it in a future positive years so I can qualify for a house this year ryaah2000 Limited Liability Company 3 02-11-2014 06:42 AM
Looks like a change in the tax code is possible before end of year! Changes will affect Middleclass Taxpayers bigtime! BayArea_CPA CPA Forums 0 05-05-2011 05:16 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning