sjrcpa
Level 15

The S Corp reports the asset sale on the 1120S in the year of sale, including the 6252 as appropriate. Gain passes thru to shareholder on K-1, as does the deferred gain. If the note was distributed to the shareholder as part of the liquidation of the corporation, future receipts are reported on the shareholder's return using the gross profit percentage from the sale, as well as the interest income.


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