Vehicle Disposition to Shareholder

[angela1]

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?

[TaxGuyBill]

 For purposes of reporting the sale on the corporate return, the 'sale' price is the Fair Market Value of the vehicle.  That is because it was given to the shareholders.

Is $13,000 the Fair Market Value?

[angela1]

I would assume not. I will have to check with the shareholders on FMV.