S Corp single shareholder wants to transfer the company vehicle to himself.
My search resulted in many unrelated topics.
The vehicle originally cost $60K in 2019 and only $3K basis remains. I know that the FMV will be taxed at the ordinary tax rate because of depreciation recapture, but I don't know how to enter this in PS.
Entering the information in the property distributions statement on Schedule K line 16 d does nothing.
Do I record it as a sale in the dispositions section of the Asset Entry Worksheet, just as I would with any sale?
Thank you.
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I believe it would be reported as a sale. Here is an article from The Tax Advisor with examples.
https://www.thetaxadviser.com/issues/2011/apr/casestudy-apr2011.html
I believe it would be reported as a sale. Here is an article from The Tax Advisor with examples.
https://www.thetaxadviser.com/issues/2011/apr/casestudy-apr2011.html
What is the reason for the transfer-payment of wages, repayment of loans, distribution, liquidation?
A word of caution: the change in ownership may create the state sales/use tax to the vehicle's new owner.
Yes. Thank you.
Assuming there is enough AAA for distributions. I believe the FMV is the value to use for the amount of the distribution.
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