sjrcpa
Level 15

Corp disposed of a vehicle for $XXX value. $XXX value went to the shareholder who used it to obtain a personal use asset.

Same result as if vehicle was distributed to shareholder first. Deemed sale at FMV by S Corp. Distribution to shareholder at FMV.

Or same result as if S Corp sold the vehicle for cash. Then distributed cash to shareholder who used it to buy a car for himself.


The more I know the more I don’t know.