S Corp sold bulk assets on Installment sale - how to enter?

Forum|Forum|3 years ago
May 4, 2023
1 reply
12 views

S Corp is closing down. A few assets were sold for cash. A group of equipment was sold on an Installment agreement. How can I get all of this into the 1120S?

Possibly put the Cash sales in via Sch D? And the Bulk sale thru Depreciation? Also there is at least 1 asset in the sale that not 100% was sold.

ProConnect Tax

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George4Tacks

Level 15

https://proconnect.intuit.com/support/en-us/help-article/federal-taxes/enter-bulk-sale-assets-proconnect/L9WhtKuo9_US_en_US?uid=lhaiy5bk

Answers are easy. Questions are hard!

A

aloneandpreplexedAuthor

Level 2

thanks George but I had already read all that and entered the details. It generates a worksheet only. Now

I need to know how to force the relevant information to the Installment Sale form. The results are as follows: Cash Price $50K. Depr = Depr to be recaptured $47121. Diff represents sale of non depre basis

$2879. Non taxed income. Principle pymet recevd in '22 - 5,700. Normally the 47121 would go into Ord Inc

on the front of 1120 since it is all recaptured deprec. In this case, we want to report only % of the 5700.No down pymt in play. There are other cash asset sales that flowed thru 4797 pg 2 just fine.

T

TaxGuyBill

Level 15

@aloneandpreplexed wrote:

Normally the 47121 would go into Ord Inc

on the front of 1120 since it is all recaptured deprec. In this case, we want to report only % of the 5700.

The recaptured depreciation of 1245 property is all taxed in the year of the sale. So it sounds like $47,121 will be on the front of 1120-S, plus some or all of the rest of the gain.

Your prior post mentioning $50,000 "cash price" wasn't quite clear - how much was the original Basis (purchase price) of the assets? How much were they sold for? If the gain beyond the depreciation recapture is small, it may not be worth reporting it as an Installment Sale.

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