S Corporation

[mircpa]

Hello friends

Have a question for one of my client. 4 years back he bought gas station real estate and business under a corporation, last year he sold business and gave his property (building) on lease, tenant pays lease every month. My question due to the fact that he sold business and corporation not deriving income from sales of general merchandize (business income), should i include form 8825 for 2008 to show income from lease. This would be only income for corporation for that year

thanks to all who reponds

[Terry D EA]

Your post is a little confusing. You state your client sold the business organized as a corporation. How did he sell the business and still keep the corporate structure? In order to respond with a good answer, more information is needed. Which business did he sell gas station or real estate? What type of corporation is this? C-Corp, S-Corp? Indeed, if an S-Corp is organized for rental real estate, then the 8825 form would be used. Sounds like there is alot more here to consider.

Terry D.

[mircpa]

Your post is a little confusing. You state your client sold the business organized as a corporation. How did he sell the business and still keep the corporate structure? In order to respond with a good answer, more information is needed. Which business did he sell gas station or real estate? What type of corporation is this? C-Corp, S-Corp? Indeed, if an S-Corp is organized for rental real estate, then the 8825 form would be used. Sounds like there is alot more here to consider.

Terry D.

He bought gas station business and real estate under the corporation's name. He sold off gas station business but not real estate and real estate continues to included under the corporation and depreciated

thanks for your response