S Corp termination

[lady di]

I have a new client who terminated the S Corp dec 31, 2024.
I need a refresher course on how to close out the deprec for them. They have a tractor basis of 26000 and accum deprec of 14100 and a pickup with basis of 61000, accum deprec of 43700 (including 10000 Sec 179). Both are currently titled in the S Corp name. They want to convert to personal use at this time. What do I use for sales price for these items...or do I even need a sales price.

[terryats]

The basis of assets distributed to shareholders when closing a s-corp is the fair market value. He does not report anything until he sells it. The s-corp will have to report it as a "deemed liquidation", and if an asset's fair market value exceeds its depreciated basis, you will unfortunately need to calculate and then show a gain on the distribution of the asset to the shareholder on the final corporate tax return

[lady di]

Can/should he sell it to himself for FMV in order to convert it to personal use>

[terryats]

No, only gets distributed to share holders. Share holders then do what they want with it. Use it for personal use, another business, sell it ( it is now personal property, and if sold at a loss no capital loss, if sold at a gain then a capital gain)

[lady di]

thanks so much...think I got it and can finish up now