s corp assets converted to personal

[oceanlovin'ea]

S corp closed as of 12/31/10. Preparing final return. The assets have been depreciated and have a zero basis.
In converting them to personal use, I believe they are treated as a sale. With zero as basis and FMV as sales price, there would be a small profit on each item.
OR are they distributed to the shareholder as his equity in the s corproation? (I don't know if that question even made sense)

I didn't see anything in TTB small business about liquidating s corps. If I missed it, please point me in the right direction.

Linda, EA

[BHoffman]

Hi Linda - they are distributed at FMV, with that being the sale price.

[BOB W]

If there is a loss on investment in corp that would be a Capital L/T Loss Schedule D 1040.

[oceanlovin'ea]

That is an interesting thought. I will have to look at that closer.

Linda, EA

[oceanlovin'ea]

Bob W

Could you elaborate on your statement about the loss on the investment please?

S corp shows profit for 2010, if that figures into the equation.

Linda, EA

[BOB W]

Any investment that effects Basis in the corporation. Capital stock, Loans from Shareholders are 2. Any outside basis is another. All should be on the shareholder Basis Report.