scorp sales

[TAX]

This client, s corp, sold business in 2007. Client, seller, financed buyer for $25,000.

So on the book of client, seller, after all settlement:

Other Asstes = $25,000 (as receivable from buyer)
Loan from sahreholder = $6127
Retained Earnings: = $-34000
Net income for 2007 = $97000

Do I need to do anything?
Can I transfer Other Assets to Loan due from Shareholder?

Thanks!

[veritas]

I don't see why

you would want to net the note receivable with the loan from shareholder. How would you account fot the payments from the buyer?



What is it you want to accomplish?

[dsi]

Tax, you need to the corporate minutes, articles, and the buy/sell agreement very carefully. Also, if you are not comfortable with corps, then refer your client to someone who is. You'll sleep much better at night.