Customer had a coffe shop that closed in June 2008. All assets remained in the building they had been renting in hopes of finding a new owner to take over the business. Finally in Feb 2009, they sold some of the assets for very little and donated some to a non-profit and gave some away because they were not able to recoup much of their investment. How do I handle the assets on the 2008 return?
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Was this a Corporation or a Sole Prop? -
Was this a Corporation or a Sole Prop
S Corp I am doing an 1120SComment
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Did they officially close the s-corp in June 2008? Close the corporation bank account, dissolve with the state, etc.? If they did that then the assets were deemed to be sold back to the shareholder at FMV. So you would report the sale of assets through the s-corporation.
I think I would consider it closed in June 2008 if they did not actively run the business and they never did find a buyer. The above would the easiest.
Hopefully some others will post their view on this. I am a little tired right now so I hope the above makes sense.Comment
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