Business auto sale is not flowing through to the form 4797. The auto did have Section 179 depreciation and is showing a gain. Do I enter manually on the 4797 p2?

[dsocpa]

Client sold his business auto.  The basis was zero after section 179 as of the date of the sale.  The sale price was $12,000, original cost of the asset was 25,000.  Dispositions on the asset entry worksheet is showing a loss of $13,025.  No gain or loss are showing on the 4797 or anywhere on the k-1.

Also, shouldn't there be a gain of $12000 since the asset's basis is $0?

The auto was purchased in 2015 and sold last year.

[sjrcpa]

What type of entity?

[dsocpa]

S Corp

[abctax55 · Accepted solution]

With an S-Corp, the § 179 sale/gain/loss info is separately reported to each shareholder on the supplemental K-1 page(s)

[dsocpa]

Yes, thank you.  Had forgotten and panicked when the gain wasn't showing up on the return.

[abctax55]

NEVER panic....come here & ask 🙂
YVW

[George4Tacks]

"come here & ask :-)" THEN panic.