On 11/30/2008 clients terminated LLC. On 10/1/2008 C-Corp was started. The LLC has a short tax year, and clients had special software developed between August and November (finished 11/20/2008) under the LLC. The software is the product the company (corp now) will ultimately sell once testing and trials are complete. According to TB 9-18, one of the options under Intangible Assets lets me treat it as a current expense to the LLC under rules for for research and experimental expenditures. First, is this a viable option considering this is the final (short) year for the LLC. Second, if the software is expensed under the LLC, what impact will it have on the corporation, if any? I feel like I'm making this harder than what it really is......any input would be greatly appreciated. Thanks.
-
-
Wondering about a few things:Originally posted by TBTax View Post
Are the former LLC members the current CCorp shareholders? Any differences?
Had the LLC made any elections to be taxed as a Corporation, or did they file a 1065 in 2007?
Others will pitch in. I'm asking pertinent (I hope) questions and giving you a bump
-
TBassTax
Yes, the former members are the shareholders of the corp. No election to be taxed as a corp, they filed 1065. Thanks in advance for any guidance......Comment
-
I don't know if it's a viable option. I believe assets will carryforward from the LLC to the CCorp at their LLC basis, whatever that ends up to be. Take a look at IRC 351Originally posted by TBTax View PostComment
Comment