bbrownatl Posted September 7, 2012 Report Share Posted September 7, 2012 I’ve got a client who has four entities(A,B,C, and D) each with a different structure and ownership. A new entity (NewCorp) was formed in Nov. 2011 and concurrently the four existing entities transferred all assets and liabilities into the new entity. Combined, they have greater than 80% control of the new entity. My question is this. Entity B is an S-Corp with assets of $200K and liabilities of $280K. So, it is my thinking that to record this transaction requires the assets and liabilities being removed AND an $80K gain hitting the book and tax return. Correct? If so, how do you report it? On Form 4797, Sale of Business Property? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.