Auto distribution

Forum|Forum|2 years ago
March 15, 2024
2 replies
27 views

Scorp purchased a vehicle for a shareholder back in 2015 for $65154. 85% business use (55381). In 2023, the Scorp decided to let him keep the vehicle. At the time, the value on the balance sheet after depreciation was $26683. The FMV, according to the client was $9851. This would reflect a loss of $16910 (26683 - 9851). Trying to figure out how to remove this from the balance sheet and how the loss will be treated on the P&L?

ProSeries Professional

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Best answer by IRonMaN

That makes sense. What about the personal use portion that should have been included years ago? Should that be included on the 2024 W2 as well?

Just leave the dead horse stay dead and move on.

IRonMaN

Level 15

Was the value of the vehicle added to his W-2?

Slava Ukraini!

A

Avs19Author

Level 6

No. Should that have been in 2015 or 2023?

IRonMaN

Level 15

2023. It could possibly be shown as a distribution but you don't say how many shareholders are involved so you are at risk of killing the sub S election if there were unequal distributions made during the year.

Slava Ukraini!