Is Sale price zero?

[TAX]

Client, consultant, sole owner of S corp closed his business on 12/31/2007

He had equipments, laptop and desktop.

Business started in 2005 and he took depreciation.

What value should I put as sale price to recapture dep or recapture does not apply as he has not sold but converted use of computers to personal use.

Thanks!

[solomon]

When still in the recovery period and an accelerated method was used, then upon conversion to personal use recapture is required - no sale at this point.

[TAX]

When still in the recovery period and an accelerated method was used, then upon conversion to personal use recapture is required - no sale at this point.

Thanks!

How should I value these computers?

[solomon]

As I recall, emphasis on recall, the recapture amounts reported on 4797 transfer to the original schedule on which the depreciation was taken. For personal use basis, it is the adjusted basis with the recapture added back.

[veritas]

The items

are sold to the shareholder at FMV on the date of distribution. Report gains on 4797 at the corporate level. No loss is allowed between corporation and shareholder.