Level 6

Question

Selling Scorp property

Forum|Forum|2 years ago
June 25, 2024
2 replies
23 views

I have an S-Corp that has only asset of "New building" from 1999 set up by previous tax preparer. The client is now selling said business and property the building is located on. How do I proceed forward and sell this building when the property is not a part of the tax return?

To add to this also. He has a personal financial statement that says "Investment in ___________ $2,190,000.00"

He is not selling the business itself only the land and building.

Thank you.

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Level 15

What name is on the real estate title?

Slava Ukraini!

judys3Author

Level 6

I have not seen that.

But to add I have a personal financial for him that has been produced for years with him having invested $2,190,000.00 in said company.

Level 7

Why isn't the building part of the Tax Return?

If the Corp owns the building that is being sold you should report the sale on the Corp books and tax return?

If the Corp was renting the Building than the Owner of the building would report the Sale on their tax return.

If neither, than I am confused as well.

Level 15

Wow... this could be a bit of a mess.

And FWIW - Personal financial statements may have 'inflated' numbers on them - were these prepared by your client by any chance?

Anyone want to bet on whether payroll has been done by the S-Corp?

HumanKind... Be Both

judys3Author

Level 6

Yes I agree.

The personal financials were completed by the previous preparer.

Actually, yes payroll has been done.