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Level 2
February 15, 2026
Question

S corp Auto Sale with bonus and 179 no gain showing up

  • February 15, 2026
  • 1 reply
  • 7 views

Good day to all: I have an S corp that traded in the business auto for $ 17,000 and keeping the new auto as personal.  History purchased in 2014 for $ 41,442 used Sect 179 25k bonus of $ 8,221 and regular dep of $ 8,221. I get nothing on 4797 and do not see the gain of $ 17,000 other then an increase in basis on stock which makes no sense.  The K-1 box 17 shows Code K (see attached section 179 disposition report) and that report just shows the asset depreciation of 16,442 and sect 179 25,000 and gross sales price of $ 17,000. but I cannot find the 17,000 gain on trade in other then on a stock basis report. FYI my line 1 on k-1 only shows regular income and nothing on 8A for net long term gain. 

One last thing when I look at my disposition on the sale it shows an asset loss of -8,000.

Thanks for any help.

 

Todd

1 reply

Level 15
February 15, 2026

I'm tired and offhand I don't remember the specific details, but I'll give you a starting point to look into:

When Section 179 was claimed, it was not actually 'used' on the 1120-S, but it passes through the K-1s and is 'used' on the 1040.

Because of that the sale also passes through via the K-1 and ends up being reported on the 1040.  Offhand, I don't remember exactly how it shows up on the 1040, but it should be there somewhere and that is why it isn't showing up directly on the 1120-S.