All Forum Posts by: Steven Hamilton II

Most of us accountants work with clients worldwide. You may want to reach out to @Natalie Kolodij or @Jake Hottenrott

It depends upon your entire tax situation. You need to consult with someone competent like @Natalie Kolodij or @jake Hottenrott.

It is worth the money consider what the advice or experience you already have is. Do not buy more RE in that entity.

You're wrong, it is better to admit it as we all make mistakes instead of digging your heels in. Do not give incorrect advice. This is Taxation of entities 101 and basics any accountant specializing in RE should understand. Ashish and others are correct. It's a deemed sale at FMV.

I literally teach this to other professionals.

While not substantial authority the publications even give this guidance.

here:

https://www.irs.gov/businesses...

And here:

"Corporation to partnership. An election to change classification from a corporation to a partnership will be treated as if the corporation distributed all of its assets and liabilities to its shareholders in liquidation and the shareholders then immediately contributed all of the distributed assets and liabilities to a new partnership.

For more information, see Contribution of Property in Pub. 541 and Distributions to Shareholders in Pub. 542."

@natalie Kolodij covered it too.

No, its a government overspending and not respecting us problem. They refuse to balance a budget. Increasing the debt ceiling is not the solution every time.

I was about to leave this alone there is no duty to pay more tax than is necessary.

When it comes to tax avoidance, we have been guided not by the invisible hand or the guilty hand but by Judge Learned Hand, who famously wrote: “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.”

 Yes, depending upon the structure someone is using. However, it is not typically a huge issue if there are no other entities involved.

As long as you do not have other traditional(SEP/SIMPLE) IRA balances that is fine. Otherwise you will end up with a proration upon converting.

Also the contribution limits are 6k/7k for 2021

https://www08.wellsfargomedia.com/assets/pdf/personal/investing/retirement/taxes-and-retirement/pro-rata-rule.pdf

@Mike Feehley Typically it is a non issue if the underlying taxpayer is exactly the same. If it is owned in your name now and it will be put into a SMLLC owned 100% by you it should be a non-issue. 
@Dave Foster covered it perfectly. 

@Anna N.  No, I can't . It goes well beyond an explanation that can be given in a forum here without facts and circumstances detailed out. ANd even if you fit a perfect fact pattern, it can be challenged and it is up to you to have the fight to argue it. I've seen different situations work very well and others that didn't based upon how they operated etc.  The true answer is, it depends, there is plenty of case law that can be reviewed on this. 

@Anna N.  That actually depends upon the full situation. Most accountants don't actually have a clue as to reading and defending per tax law and court cases. The average person would not qualify as a business. There have been several court cases and summary judgements on this topic. Facts and Circumstances will determine the outcome in every case.