Could someone walk me through this?
I have a client selling his landscaping biz. The biz is a S corporation, one shareholder, all of his equipment in his name. Most of the equipment is without basis due to past depreciation. His gross receipts have averaged about 600k per year with decent profits.
Anywho, lets say he sells his biz for $500k for his client lists and equipment. I know you report the equipment sale on the 4797 and the client list on the sch D. Do I need to allocate any portion of the sale to the stock that he owns in the corp? Or should I report the entire sale on his individual return and file a final return for the S corp?
Also, please be gentle, as I am mostly familiar with individual returns and Sole Props.
Thanks in advance.
I have a client selling his landscaping biz. The biz is a S corporation, one shareholder, all of his equipment in his name. Most of the equipment is without basis due to past depreciation. His gross receipts have averaged about 600k per year with decent profits.
Anywho, lets say he sells his biz for $500k for his client lists and equipment. I know you report the equipment sale on the 4797 and the client list on the sch D. Do I need to allocate any portion of the sale to the stock that he owns in the corp? Or should I report the entire sale on his individual return and file a final return for the S corp?
Also, please be gentle, as I am mostly familiar with individual returns and Sole Props.
Thanks in advance.
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