How would you show a disposition of the business vehicle (1245 property) on the Final Return for S-Corp?
Cost: 60K – Depreciation 32K = Auto Basis 28K
Auto Loan (Liability) – 22K
Let’s assume that the auto was sold to the shareholder (S/H) for 45K (FMV) and that current shareholder basis is 2K
How would you 1) zero-out this B/S item on S-Corp return, 2) where are proceeds flowing and 3) how would you show that S/H had assumed this liability (if needed)?
Cost: 60K – Depreciation 32K = Auto Basis 28K
Auto Loan (Liability) – 22K
Let’s assume that the auto was sold to the shareholder (S/H) for 45K (FMV) and that current shareholder basis is 2K
How would you 1) zero-out this B/S item on S-Corp return, 2) where are proceeds flowing and 3) how would you show that S/H had assumed this liability (if needed)?
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