Can a partnership file be converted to and S Corp file?

[brazenbrazier]

Have a partnership that is electing S-Corp status.  The company is currently in Lacerte as a partnership. Can the file be converted to an S-Corp?

[sjrcpa · Accepted solution]

No

[George4Tacks]

I just found some old notes and I tested this process. 

Note the Partnership client number – let’s say P005 FOR TAX YEAR 2021 where last digit of file is a 1.

Go to the S Corp module and create a new client S005 and enter Screen 1 info.

Close Lacerte and open File Explorer and go to your data drive shown by X. X:>Lacerte>21tax>PDATA>DETAIL and locate P005.PD1

Copy that file

go to X:>Lacere>21tax>SDATA>DETAIL and paste that file P005.SD1

Rename S005.SD1 to S005.old

Rename P005.PD1 to S005.SD1

Now return to Lacerte and MOST OF YOUR DATA will now be in Partnership module. Review carefully. Not a perfect solution, but I think quicker than total re-entering of all data.

This same concept will work to go S Corp to Partnership

[Randy76]

I have a similar situation - client who previously elected to be taxed as an S-Corp, now going back to LLC Partnership.  Can you please explain how to do this in ProSeries?  I appreciate your time.

Randy Schutlz

[George4Tacks]

I do not know file structures for PS. I would guess that a similar approach MAY work. Maybe @Just-Lisa-Now- might have an idea of how to do a SCorp to Partnership conversion. 

[Just-Lisa-Now-]

I dont deal with corps or partnerships, @garman22 hey Mike, do you know if you can convert an SCorp file to a partnership in PS?

[garman22]

Assuming you file what needs to be filed with the IRS, revoking your S Corp election is doable. 

Unfortunately I do not work with PS for my corporate needs. I use UltraTax. 

I've never had a client revoke their election once elected. 

There are some rules re: bouncing back and forth. Make sure the client is aware of this. 

[Just-Lisa-Now-]

Ahhh, I forgot you had UT for business entities!