Question

s-corp business sale to another s-corp

Forum|Forum|4 years ago
May 8, 2022
1 reply
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sold all s-corp assets including inventory, equipment and goodwill to another s-corp. where do i record the sale. would it be recorded in the s-corp and reflected on k1 or would it be recorded in personal taxes. if should be recoded on k-1 where do i enter in turbo tax? please advise.

TurboTax Business Windows

Critter-3

sold all s-corp assets including inventory, equipment and goodwill to another s-corp

On the FINAL S-Corp return you file you will sell off any assets, include the amounts you got for the goodwill and inventory as ordinary income and reduce your year end inventory to zero. A final K-1 form will also be issued to use on the personal return ... hopefully you have been keeping the basis records correctly ... if not then seek a local tax professional for assistance with the situation.

You and the buyer have to decide how much of the purchase price belonged to each part of the sale ... a form 8594 needs to be filled in and filed with the returns ... https://www.irs.gov/forms-pubs/about-form-8594

T

thepropertyrentalAuthor

thanks.

where do i enter this information in turbotax business?

Critter-3

I told you some will be ordinary income, some the sale of assets and possibly involve the inventory section if you have been tracking inventory and not just expensing the purchases. Is this your first business return ?

If you are having trouble following the interview screens and you don't know where to enter any of this on the forms directly then I highly recommend you seek local professional assistance especially if you did not put this business on extension as it was due 3/15 and the penalties are piling up.