Is the scorp final if assets aren't sold yet.

[ericgonzales98]

California filer; s-corp, single shareholder, business is a truck driver, owner operator

Client decides to close down the business in 2024, started in 2021. Client only worked up to April 1st of 2024. The truck and trailer had a balance of roughly $29K/$12K as of 12/31/24. Client surrendered them to the creditor. They have not been sold yet at auction where the proceeds would go against the balanced owed. 

My question is, the assets are not considered "sold" yet, right? We technically don't know what are gain/loss is yet, right? Since now we're in 2025, we have to keep the scorp open still? We can't mark 2024 s-corp return as "Final" because the assets have not been disposed/sold yet, right? Does that mean we file the 2024 like normal and hopefully the assets are sold in 2025. 

Thanks!

[IRonMaN]

Yup, not final until the truck is sold and the proceeds are distributed to the shareholder 

[ericgonzales98]

In digging deeper, the shareholder is not personal liable for the assets. Since it's non recourse loan, surrendering the vehicle would be treated as a deemed  sale for tax purposes, no? The proceeds could equal the loan balance at time of surrender. Proceeds less the adjust tax basis will give me the gain/loss, no?

[sjrcpa]

If you have the 12/31/24 balances, it sounds like the surrender didn't occur until 2025.

And the lender is going to give 1095-C(?) paperwork for COD income when the truck and trailer are sold.