can someone explain why we even need to worry about this ein stuff when converting? i mean i get that an llc gives you liability protection but why does the irs care if its the same business just with a different legal structure?? seems like unnecessary bureaucracy to me.

Just went through this exact conversion process a few months ago and can confirm what others have said - you definitely need a new EIN for your LLC. The confusion often comes from people thinking they can "transfer" an EIN, but that's not how it works. Here's what I learned: Your DBA is tied to your personal SSN or sole proprietor EIN, while your LLC is a completely separate legal entity that needs its own tax identification number. Think of it like this - if you were to close your LLC tomorrow, your personal tax obligations would still exist separately. The process is actually pretty straightforward once you understand it: 1. File your LLC formation docs with your state first 2. Apply for a new EIN online at irs.gov (takes 5 minutes, get it instantly) 3. Use your old EIN for final sole proprietor tax filings 4. Start using your new EIN for all LLC business going forward Don't overthink it - the IRS chat service is notoriously unhelpful for specific questions like this. The online EIN application is really the easiest route. Just make sure your LLC paperwork is filed with your state before applying for the EIN.

Scam don’t buy it’s all lies

I appreciate everyone sharing their experiences here - this thread has been incredibly informative. I'm in a similar situation with my LLC and have been researching the retroactive S-Corp election process. One thing I want to emphasize for anyone considering this: timing is absolutely critical. The IRS has specific deadlines under Rev. Proc. 2013-30, and missing them means you lose the opportunity entirely. If you're thinking about pursuing this, don't wait - start gathering your documentation and consult with a qualified tax professional immediately. Also, while the potential tax savings are attractive, make sure you run the numbers carefully. As others have mentioned, the ongoing compliance costs for S-Corp status (payroll processing, additional tax filings, reasonable salary requirements) can be significant. In some cases, especially for smaller businesses, these costs might outweigh the SE tax savings. That said, for businesses with substantial profits, the savings can be worth the complexity. The key is having realistic expectations and working with professionals who have specific experience with late entity elections - this isn't something you want to handle with a generalist CPA who "thinks they can figure it out.

Has anyone dealt with wash sales when reporting losses? I sold some stocks at a loss but then bought similar ones within 30 days by accident. The 1099-B shows some adjustments and I'm confused about how to report this on Form 8949.

Just wanted to add one important detail that might help others in similar situations - when you're dealing with capital losses that exceed the $3,000 annual limit, make sure to keep really good records of your carryover amounts for future years. I learned this the hard way when I moved and lost some of my tax documents. The IRS doesn't automatically track your capital loss carryovers for you, so if you can't prove the carryover amount from previous years, you might lose the benefit of those losses. My recommendation is to: 1. Keep copies of your completed Form 8949 and Schedule D each year 2. Write down your carryover amount somewhere safe 3. Consider using the same tax software year after year since it usually tracks carryovers automatically Also, just to confirm what others have said - yes, you absolutely need Form 8949 even for just two simple transactions. I tried to skip it one year thinking Schedule D was enough and got a notice from the IRS asking for the detailed transaction information that goes on Form 8949.

Has anyone else noticed that ALL the tax sites seem to crash more often nowadays? I remember when you could file without all these technical glitches. Last year TaxAct kept logging me out mid-session and I lost data twice. This year I'm trying Free Tax USA and having similar issues.

I experienced something similar with Free Tax USA last month! The site was completely unresponsive for about 2 days, but everything was still processing normally on their end. What really helped me was calling their support line at 1-800-585-1040 early in the morning (around 7 AM) when wait times were shorter. The customer service rep was able to confirm my payment schedule and even sent me a new email confirmation while I was on the phone. They explained that when their website goes down, it's usually just the front-end interface - all the backend payment processing and IRS submissions continue to work normally. Also, if you're really stressed about the payment timing, you can always make a manual payment directly to the IRS using their Direct Pay system as a backup. That way you know for certain your payment went through, and if Free Tax USA's automatic payment also processes, the IRS will just send you a refund for the overpayment.

Has anyone mentioned that some closing costs can increase your cost basis in the home? Things like transfer taxes, recording fees, and other acquisition costs aren't deductible now but they reduce your capital gains when you sell. This was a big deal for me when I sold my last house after 15 years - all those non-deductible closing costs from when I bought it ended up saving me thousands in capital gains taxes when I sold!

Great question! Yes, definitely keep your closing statement (HUD-1 or Closing Disclosure) in a safe place - you'll need it when you sell. I scan mine and keep digital copies in multiple places since paper can fade or get lost over decades. Besides the closing statement, also keep records of any major home improvements you make over the years. These can also be added to your cost basis and reduce capital gains. Things like a new roof, HVAC system, kitchen remodel, etc. The IRS considers these "capital improvements" that add value to your home. I keep a simple spreadsheet with the date, description, and cost of each improvement, plus I scan all the receipts. It's amazing how much these can add up over time - my improvements totaled over $80,000 when I sold, which significantly reduced my taxable gains!