I have an SCorp client who is closing the business at year end 2007. Some assets were sold, some were just disposed. I plugged the sales and disposals into a TurboTax deprec schedule and the gain on the M-1 is approx correct, but the income on page 1 of the 1120S is only showing the gain on the non sec 179 assets.(the M-1 schedule is checked that book and tax are the same). I thought my book entry for asset disposal would be cr the asset, db accum deprec, db cash if received, and the difference would be gain or loss on sale of assets. I'm not understanding why turbo tax is only showing the gain from the non sec 179 property on the 1120S and putting the rest as an M-1 adjustment. Why are the sales from the 179 assets not recognized as gain? What am I not getting here?
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179 Depreciation flows to your K-1 and is taken at the personal return. -
Depreciation recapture from the disposition of Section 179 property flows to line 4, page 1, of the 1120S. Any Section 1231 gain (gain in excess of depreciation allowed) on the disposition of Section 179 property flows to line 9 of the Schedule K.Comment
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what am I missing
The allowable depreciation is $21,432.00, the cost of the assets are $22,432. The selling price is $18,208. Since these assets were almost fully depreciated, why am I not seeing a decent gain here.Comment
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You are not entering something correctly into Turbo Tax.
None of us use Turbo Tax, as we are required to spend thousands on professional software, so we can't tell you how to get your software to calculate it correctly.Comment
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yes, that was it
I plugged the return into Pro Series and it showed the gain I was expecting. Turbo Tax just does not like anything out of the ordinary. thanks for your repies.Comment
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yes, that was it
I plugged the return into Pro Series and it showed the gain I was expecting. Turbo Tax just does not like anything out of the ordinary. thanks for your replies.Comment
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