Question

Assets on final 1120s

Forum|Forum|3 years ago
March 31, 2023
3 replies
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On my s corp final 1120s return what is the best way to report or enter assets such as tools? In my case it is $600 of small handheld tools such as moisture meter, thermometer etc. I would like to keep them for personal use but I probably need to show them as distributed. Thanks for all of the help I have received from this forum!

M

MAK70

You have to show the disposal on your books- you can take the property as a distribution, using fair market value as the amount of the distribution.

M

Maxtax899Author

Thank you! Is there a particular form that I will need to use in order to take it as a distribution?

JosephS1

No, there is no particular form to fill out for your distribution. It is handled within the program in the "Shareholder Information" section. The following steps should assist you in entering the distribution:

The easiest way to get to the entry screen for shareholder distributions is to click on "Search" towards the top right corner and type in "shareholder distribution" in the search bar, then click on the jump feature.

You should arrive at the screen showing below and click where it says "Yes, the corporation ...:

Click "Continue" and the following screen should appear:

Since the distribution you are asking about is for corporation property, you should enter the fair market value of the property distributed in the Property box and then click continue.

You will then need to enter and/or review the shareholder's stock and debt basis limitations for accuracy. The questions and guidance within the program should assist you in completing this area.

@Maxtax899

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M

Maxtax899Author

I followed your instructions and everything's good however turbotax business gave me this message.

"If property other than cash was distributed, attach a statement to provide the following information.

The date the property was acquired.

The date the property was distributed

The property's FMV on date of distribution.

The corporations basis in the property."

Is there a form or way I can include this?

Thank you!

T

ThomasM125

You can bring up the Miscellaneous Statement in TurboTax where you can enter your statement. Use the Forms Mode and then Open Form and type in Miscellaneous Statement to bring up the form.

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Rick19744

To be clear on this matter, liquidating distributions from an S corporation are not reflected on the tax return as distributions.

Liquidating distributions from an S corporation are reported on form 1099-DIV in the appropriate box; currently either box 9 or 10 determined by the type of liquidating distribution.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.