Question
Vehicle Disposition to Shareholder
I have an S-Corporation that had two vehicles for delivery. They are not doing delivery anymore so the company sold the vehicles to the shareholders for $0. The agreement was that the shareholder would take over the loan of the vehicle, roughly $13000 each. Even though the company received $0 in the sale they were relived of the debt which was $26,000. How best to enter this into the disposition screen?
In the depreciation/disposition screen I entered the sales price of $13,000 for each vehicle since the shareholders took over the loans. Technically the shareholders paid $0. I also marked that is was a related party sale. This does not create an additional loss.
Thoughts?
