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Schedule C to S Corp conversion software

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#1
Posts:
13
Joined:
22-Apr-2014 9:55am
Location:
Houston
Does anyone know of any software that would show how much money a person would save by converting to and S Corp. Something where you could enter a few assumptions and it could spit out the savings. I can do it by hand, but it normally takes longer and I am looking for something being more efficient.
 

#2
Posts:
1125
Joined:
28-Jul-2017 12:08pm
Location:
North Country, USA
Set it up in excel and use the same template each time.

Someone on the forum might have a sample they could provide.

Unaware of a “software” that would run a calculation.

There are a lot of nuances that would make a software difficult to trust (imo).
 

#3
Posts:
674
Joined:
22-Apr-2014 12:02am
Location:
Lower 48
The template needs to consider impact of local or city taxes that may be imposed especially if revenue recognition is different (market-based vs place of performance) for an S corporation vs Schedule C or partnership. For example, in NYC, a C corporation's revenue is market-based sourcing whereas S corporations, partnerships, and Schedule Cs are place of performance. There is no penalty for an S election if there are clients/customers located in NYC.

If NYC changes its rules so S corporations conform to C corporations for revenue sourcing, the NYC tax would be ~9% on taxable income. That alone can change the decision of whether to elect or not.
 

#4
Posts:
40
Joined:
1-May-2014 2:47pm
Location:
San Diego
This one is far from perfect (you need to carefully look at the assumptions made from your inputs), as it is designed to look specifically at QBI affect, and does not have locality adjustments, yet it helps me start the discussion with the client.

https://proconnect.intuit.com/tax-reform/entity-selection-calculator/?fbclid=IwAR3lxeGhgMUUOlUD4NdXeAvvIBbmQ7k1rkmCvkV1967Eob1BxV1mlSh5Fh4
 

#5
novacpa  
Posts:
790
Joined:
28-Apr-2014 1:16pm
Location:
Arlington, Virginia
Intuit ignores the issue of SE tax and risk avoidance of not paying "reasonable compensation".
 

#6
ocdtax  
Posts:
78
Joined:
16-Feb-2021 4:37pm
Location:
FL
Planner CS (Thomson Reuters product) has the ability to run a projection with side-by-side analysis of an S-corp conversion for individuals that are self-employed.
 


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