Dhawk Posted April 4, 2022 Report Share Posted April 4, 2022 Terminating. S Corp has several equipment items that were not sold. Most are fully depreciated. Single shareholder/owner wants to hold on to them personally and sell if possible. How does this work on the 1120s and the 1040? I'm guessing its taxed at FMV on the 1040. Thanks. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 4, 2022 Report Share Posted April 4, 2022 doesn't he take it as a distribution, and then it's just personal property he sells with no tax reporting? Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 4, 2022 Report Share Posted April 4, 2022 5 minutes ago, schirallicpa said: doesn't he take it as a distribution, and then it's just personal property he sells with no tax reporting? If he does that, his basis will be 0 and everything he gets becomes profit. FMV while on the company's book and a distribution sound good to me. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 5, 2022 Report Share Posted April 5, 2022 Assets removed from an S corp are essentially treated as if sold for FMV. https://www.thetaxadviser.com/issues/2011/apr/casestudy-apr2011.html 1 Quote Link to comment Share on other sites More sharing options...
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