- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
S Corp Gain (Loss) on Disposition of Section 179 Assets (sold autos) flowing to M-1 line 5a as nontaxable instead of taxable gain flowing to K-1.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"flowing to M-1 line 5a as nontaxable instead of taxable gain flowing to K-1"
Not quite.
M-1 Line 5a is income recorded on books not included on Sch K Line 1 - 10.
Gain on assets where 179 was used does not appear on hose lines.
It gets passed through separately to the shareholders as a statement.
The more I know the more I don’t know.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes, I agree but that is not what the software is doing and I do not know why.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
It seems wrong, but it is supposed to be on the M-1, because it goes directly to the shareholder's K-1 box 17K. So the amount is not on Schedule K per se. You should find a report attached with the shareholder's K-1 showing the Section 179 taken. That will be reported on the 1040.
