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There are a number of articles online about this issue, but this one should be helpful: https://www.withum.com/resources/can-an-s-corporation-make-disproportionate-distributions/

That is why I wish there was a mandatory requirement to provide a detailed depreciation schedule with the client's copy of the tax return. I am currently trying to track one down from an independent preparer that has seemed to have vanished.

To the child yes, but to the "landlord parent" it would be income.

An LLC could be created by either an asset transfer, a stock transfer, or a liquidation. There is potential gain on the transfer of assets under any of these three methods. Regardless, you need to determine the basis of stock on DOD based on fmv for the heir(s). My first question would be what type of business is this? Secondly, I would request a list of assets and liabilities. In regards to depreciation, you can probably safely assume that most any 1245 assets reported on the last return nine years ago have been fully depreciated. Do they have any records or bank statements for the following years to determine any additional assets purchased? Is there a manager or key employee that might have some knowledge of such? Does the company own a building? If so the cost and date of purchase should be available from the courthouse. You mentioned shareholder salary, have payroll taxes and reports been filed? How about personal tax returns? Also, you might have estate tax issues to address. Offhand, I do not see a way around filing a current and past returns, with or without depreciation; the estate attorney might also wish to see copies.

I believe that would a reimbursement of the children's expenses. The recipient of the rent, a motel or an landlord would have income.

I have run into this several times before and I just debit the normal fixed asset account and enter it on the depreciation schedule when the asset goes into service. Works just fine for me.

... I became a landscaper. And I have the farmer's tan to prove it! We hired a crew for the front yard. We did the side door ourselves. The backyard is still a work in progress leftover from last fall. A little hardscaping is next (walkways, patio, etc.). Our life will involve a lot of watering over the summer, but we're as happy as we are tired. There will be a rose trellis on the right side and some evergreen bushes on the left. Our side door. A flagstone walkway from the driveway to the front door that follows the curve of the bed goes here.

I knew that - but was hoping that I was wrong. Thanks!

I'll see your cat, and raise you a matrix. Matrix Ping Pong