Completed 1031. Filing Taxes Q (prev LLC, no more LLC)

[Uzair Syed]

Hi,

This sounds more like a tax/accounting question but seeing if anyone has any insight here.

My parents just completed a 1031.

Relinquished property and replacement property both under parents names.

Accountant saying we filed taxes for the relinquished property under an LLC my parents had for past 5 years for tax purposes.

Note: the LLC did not own the property; my parents did under their names.

They cancelled the LLC 2 months ago (before replacement property was purchased ).

Accountant saying he's not sure how to file the 2020 taxes since the LLC doesn't exist anymore.

I'm not even sure if this has to do anything with doing the 1031 since the LLC never owned the relinquished property.

Thank you

[Dave Foster]

@Uzair Syed, most of this now is a question for your accountant or the accountant who understands and will stand behind their course of action.

If an LLC is dissolved it still has to file a final tax return for the year in which it dissolves. The IRS simply wants the tax return filed on time and the date of dissolution.

I don't have a clue whether 5 amended returns or asking forgiveness rather than permission would be better.

There is no statutory seasoning period.  The facts of each situation will determine an appropriate time period for changing the tax payer.  It could be immediately or it could be a year.