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Technical topics regarding tax preparation.
#1
zl28  
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845
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Location:
usa
If a partnership becomes a single member LLC do you need to get a new federal id #
 

#2
mscash  
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378
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28-Apr-2014 1:26pm
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Modesto, California
Yes
 

#3
zl28  
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845
Joined:
22-Apr-2014 10:27pm
Location:
usa
darn..i didn't....i'm thinking i'll show as an expense on page 1 of ptshp return ...and then i'll offset it with other incoem and say look to xyz's indiv return......and then i'll deduct on xyz 's indiv return......

appreciate thoughts if that is best way to go since it's for 2017
 

#4
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606
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4-Mar-2018 9:03pm
Location:
Georgia
I believe you would.

https://www.irs.gov/businesses/small-bu ... -a-new-ein

The LLC section doesn't have an example that matches your fact pattern, but the partnership section does.

Partnerships

You will be required to obtain a new EIN if any of the following statements are true.

-You incorporate.
-Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
-You end an old partnership and begin a new one.

You will not be required to obtain a new EIN if any of the following statements are true.

-The partnership declares bankruptcy.
-The partnership name changes.
-You change the location of the partnership or add other locations.
-A new partnership is formed as a result of the termination of a partnership under IRC section 708(b)(1)(B).
50 percent or more of the ownership of the partnership (measured by interests in capital and profits) changes hands within a twelve-month period (terminated partnerships under Reg. 301.6109-1).


I would just run a trial balance up to the date that it became a SMLLC. That's the partnership's final short-year data. Then run a trial balance from the date it became a SMLLC to year-end. That's Schedule C data for the individual. No need for reporting the individual's loss on the partnership return and phantom offsetting income.
 


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