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Importing rentals and assets from 1040 to 1120S for client that changed to an S-Corp for 2018. They have 77 rentals.

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Level 1

My client has 77 rentals on 1040, changed to S-Corp 2018. Wondering if anyone knows if i can get the rentals and all the assets from the 1040 imported into the 1120s, so i dont have to re-enter everything.

Thanks!!

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Level 12

"Going to an LLC" is different than "going" to S Corp 1120S. S Corp requires payroll, this becomes active and earned income, subject to Social Security and Medicare taxes, unemployment, etc. The real property, loans, other titled, deeded and legal aspects would need to be changed to S corp ownership by name. That's why you see the CPAs on this forum use the "sarcastic font indicator" when discussing the issue of Real Property held by an S Corp. Because now, the people do not own the real estate; they own shares in the S Corp. Are you sure you are asking about 1040 vs 1120S, or 1040 vs 1065?


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8 Replies 8
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Level 12
As far as I know, everything needs to be re-entered.

I hope you were able to help them make the decision about putting all of that real estate in a corporation, because the general rule is to not do that (but a S-corporation isn't that bad, compared to a C-corporation).
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Level 15
How much you wanna bet that the deeds on the 77 properties were transferred to the name of the S corp?

ex-AllStar
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Level 15
I'm in the never put real estate in a corporation camp.

ex-AllStar
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Level 10
I think it ranks right up there with gifting substantially appreciated assets.  Happy Birthday son, here, take my deferred tax liability.
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Level 12
It's been a while since I've thought about it, but if the assets are never removed for personal use, what is the harm of a S-corporation?
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Level 1
TaxGuyBill....no, they did this with their attorney, then told me.  Sitting with them next week to figure out if going to an LLC is the right thing or if it really makes a difference at all....
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Level 15
LLC for 77 properties makes sense.

ex-AllStar
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Highlighted
Level 12

"Going to an LLC" is different than "going" to S Corp 1120S. S Corp requires payroll, this becomes active and earned income, subject to Social Security and Medicare taxes, unemployment, etc. The real property, loans, other titled, deeded and legal aspects would need to be changed to S corp ownership by name. That's why you see the CPAs on this forum use the "sarcastic font indicator" when discussing the issue of Real Property held by an S Corp. Because now, the people do not own the real estate; they own shares in the S Corp. Are you sure you are asking about 1040 vs 1120S, or 1040 vs 1065?


*******************************
"Level Up" is a gaming function, not a real life function.

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