rich Posted December 26, 2009 Report Share Posted December 26, 2009 TP discontinued Limousine business and coverted the vehicle for personal use with adjusted basis $7100 and FMV $3600.Should it be reported on form 4797.I dont see anywhere to input FMV of converted asset but only the selling price. Thanks in advance. Quote Link to comment Share on other sites More sharing options...
jainen Posted December 28, 2009 Report Share Posted December 28, 2009 >>converted the vehicle for personal use<< Do you mean the shareholder took a distribution from the corporation? Quote Link to comment Share on other sites More sharing options...
OldJack Posted December 28, 2009 Report Share Posted December 28, 2009 TP discontinued Limousine business and coverted the vehicle for personal use with adjusted basis $7100 and FMV $3600.Should it be reported on form 4797.I dont see anywhere to input FMV of converted asset but only the selling price. Thanks in advance. The "sale" of the asset at FMV must be reported on form 4797 attached to the 1120S. Sale price is FMV. Sounds like the S-corp must recognize a loss on the sale and pass the loss thru to the 1120S-K1 for the shareholder's 1040 tax return. The shareholder will now have a lemo with tax basis of FMV. Quote Link to comment Share on other sites More sharing options...
rich Posted January 1, 2010 Author Report Share Posted January 1, 2010 Yes Jainen TP Took distribution from corporation.Thanks Jainen and Oldjack for advice. 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.