Tax

  • 1.  C-Corp and Self Rental Rule

    Posted 12-11-2014 11:28
    Happy Holidays!

    Husband and wife, formed a LLC in 2009, purchased a building to rent it out to his other S-Corporation, and the partnership return was prepared, but never filed.  Now, I am fearing penalties at VA and the IRS with pass-thru entities, thinking I am going to file this LLC as C-corporation to minimize penalties.  First, is this a good idea? And my other question is:  Do I mark the 1120 returns as Closely held corporation to comply with Self Rental Rule?  I use Lacerte program for taxes.  Thank you for your help in advance. 

    Sue

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    Sue Pender CPA
    Sole Proprietor
    SNP Accounting Services, LLC
    Manassas VA
    703-424-6813
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    CPA Charge - April 2023


  • 2.  RE: C-Corp and Self Rental Rule

    Posted 12-11-2014 11:57

    You cannot file as a C Corp without a valid entity election – file the 1065s. Further, I would not want to include real estate in a C Corp so consider carefully the effects of making such an election in the future.

    Partners need to bite the bullet for their delinquency then request waivers of the late filing penalties. If you can show that the returns of the partners were filed on time, you have a good shot and getting penalties waived or reduced.

     

    Best Personal Regards,

     

    Dennis C. Ponton, CPA, CFP®

    11602 Stuart Mill Road

    Oakton, VA 22124-1110

    703-758-6665 (land line – Anita Sangi on your Caller ID )

    301-404-9770 (cell)

    DPontonCPA@aol.com

     




    Original Message
    CPA Charge - April 2023