fredazcpa Posted January 28, 2010 Report Share Posted January 28, 2010 client shuts down business mid year, gave equipment to landlord in exchange for canceling the lease and back rent for 14 months about 38K. The question is this a "sale" of the equipment, which then also be "rental Expense" (client also filing a final 1120S), if this is a sale then there is possible sec 179 recapture. They (shareholders) will be filing for BK when the taxes are done and any (if) refunds are in hand and yes I am getting paid before anything walks out the door thanks Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 28, 2010 Report Share Posted January 28, 2010 Yes, it's a sale and should be shown on a 4797. Quote Link to comment Share on other sites More sharing options...
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