I recorded $2,500 in non cash contributions on a S-Corp. Now my Balance Sheet is out of balance of course. How do I offset this? Thanks!!

Marianne436 · ‎12-07-2019

PhoebeRoberts · ‎12-07-2019

This is a Schedule M book-tax difference.

Be aware that you only get FMV as a deduction if the property would have generated capital gains, not ordinary income, if sold.

Marianne436 · ‎12-07-2019

Thank you Phoebe!!

George4Tacks · ‎12-07-2019

Add a non cash asset?

Answers are easy. Questions are hard!

Marianne436 · ‎12-07-2019

my assets are more than my Liabilities & equity with this non cash contribution.

IRonMaN · ‎12-07-2019

What was the contributed that was non cash?

Slava Ukraini!

George4Tacks · ‎12-07-2019

I think maybe a deduction of non-cash to Goodwill or something like that. As opposed to a shareholder contribution of stuff, you gave away stuff?

Answers are easy. Questions are hard!

IRonMaN · ‎12-07-2019

I'm not sure. I wish Intuit hadn't dropped the mind reading courses. Although the new hostage crisis classes seem to be helpful.

Slava Ukraini!

Marianne436 · ‎12-07-2019

It was office furniture donated to Habitat for Humanity

PhoebeRoberts · ‎12-07-2019

Your deduction is limited to basis (zero!) because the depreciation recapture would be ordinary if it had been sold.

Marianne436 · ‎12-07-2019

Thank You! Yes you are right!

George4Tacks · ‎12-07-2019

A reduction in non-cash asset given away?

Answers are easy. Questions are hard!