Final 1120S return

[rich]

TP discontinued Limousine business and coverted the vehicle for personal use with adjusted basis $7100 and FMV $3600.Should it be reported on form 4797.I dont see anywhere to input FMV of converted asset but only the selling price.

Thanks in advance.

[jainen]

>>converted the vehicle for personal use<<

Do you mean the shareholder took a distribution from the corporation?

[OldJack]

TP discontinued Limousine business and coverted the vehicle for personal use with adjusted basis $7100 and FMV $3600.Should it be reported on form 4797.I dont see anywhere to input FMV of converted asset but only the selling price.

Thanks in advance.

The "sale" of the asset at FMV must be reported on form 4797 attached to the 1120S. Sale price is FMV. Sounds like the S-corp must recognize a loss on the sale and pass the loss thru to the 1120S-K1 for the shareholder's 1040 tax return. The shareholder will now have a lemo with tax basis of FMV.

[rich]

Yes Jainen TP Took distribution from corporation.Thanks Jainen and Oldjack for advice.