Recording giving away Corp Vehicle

[dude7707]

J/E to record giving away to non-related individual, where no monies were exchanged, a fully depreciated

Corp Vehicle?

Was given FMV at date or transfer.  - Why need if no money was received?

Entry S/B in Bks::

Dr.  A/D - Vehicles

Cr.  Vehicles

Same entry in tax return correct?

[qbteachmt]

"Was given FMV at date or transfer. - Why need if no money was received?"

Because in general, you cannot just give away things of value and avoid having some sort of impact. In other words, if it is Worth $0, and your gain/loss is $0, that is assumed it also was worthless to the receiver. Or, you donated to a Charity, so there is some value they will show as support. Or, you intend to have the loss show as expense for the business, but you need to examine if that value you just gave away is something the receiving entity might need to report as taxable. Example: You give an older company truck to a subcontractor who was using it already, in lieu of paying them cash. This is part of their compensation and still gets handled the same as cash, including the reporting requirements for 1099-NEC would apply.

"giving away to non-related individual"

But the Boss cannot give their older company truck with FMV of $25,000 to the son-in-law's brother without appropriately handling this transaction.

We really need more details.

[dude7707]

try to give more details:

In 2020, trying to prepare accurate FA's, so gave list to client, they in turn provided, in limited fashion the current status of each item.  The one's in q here are:

2001 Ford Ranger   CB 16,470   -  A/D  16,470   - NBV - 0  -  gave away to family in 2017 - FMV $1,500

1992 Jeep                CB 2,000   -  A/D  2,000   - NBV - 0  -  gave away to family in 2010 - FMV $1,500

2008 Toy Tundra       CB 35,356   -  A/D  26,215   - NBV - 9,141 -  gave away to family in 2010 - FMV 10k

Best of my knowledge none of these were donated to charity and all given to family.

So I stand corrected, these shown above are not non-related.

Doe this help or is more information required.

The proper way, of course, would be to amend the prior years, but they are just wanting to correct this all in 2020.

[sjrcpa]

c Corp or S Corp?

Sounds like a deemed dividend or distribution at FMV to shareholder, who then gave it to relatives.

[dude7707]

S-Corp