1120S Asset Sale - Where are sale of non-capitalzed assets and goodwill reported?

[David]

S Corp owner had an asset sale in 2015 and closed his business. I disposed of the assets that were capitalized. All took sec 179 so I know the 179 report will be used by the SH to report on his personal tax return.

Where do I report the gain from sale of non-capitalized assets and gain from sale of goodwill so that the TP will be taxed at the LTCG rate? 

I am using ProSeries, if that matters.

Thanks for your help.

 

[Lee B]

What other stuff are you asking about supplies and inventory or ?

[David]

Small tools and equipment.

[grandmabee]

why wasn't small tools and equipment depreciated?

 

[BHoffman]

On April 2, 2016 at 11:43 AM, David said:

S Corp owner had an asset sale in 2015 and closed his business. I disposed of the assets that were capitalized. All took sec 179 so I know the 179 report will be used by the SH to report on his personal tax return.

Where do I report the gain from sale of non-capitalized assets and gain from sale of goodwill so that the TP will be taxed at the LTCG rate? 

I am using ProSeries, if that matters.

Thanks for your help.

 

Did the SCorp shareholder sell his company's assets to another company, or did he sell his assets piecemeal to different buyers?

Was the goodwill already on the books and being amortized when your client closed his company, or is this goodwill from the sale of the assets?

The small tools and equipment are treated as sold for fair market value.  The cost basis would be zero if the stuff was expensed.

[David]

He sold his assets to one company. The goodwill is from the sale of assets.

That's how I treated the small tools and equipment.

I reported the goodwill on Sch D.

Thanks for your help.

[BHoffman]

I'm curious.  Did you have to file form 8594?