Level 3

S-Corp Sale of Assets ~ Proper Reporting ~ Installment Sale

Forum|Forum|3 years ago
March 6, 2023
2 replies
2 views

I have a client that sold their S-Corp assets, goodwill & going concern.

The sale was December 29, 2022. No money was received in 2022.

The sale price was $234,287

Assets $25,000

Receivables $24,287

Going Concern/Goodwill $185,000

The undepreciated assets as of 12/29 are $73,187 (mostly undepreciated Leasehold improvements)

Considering no cash was received in 2022, I am assuming an installment is appropriate.

But.... do I have a reportable loss on the fixtures, equipment and leasehold improvements for 2022? Or would I allocate some of the basis to the $185,000? I am not sure how to do this in Proseries.

Any advice is appreciated.

This topic has been closed for replies.

sjrcpa

Level 15

Fixed Assets are Assets. Assets sold for $25,000. Basis 73,187. Sounds like a loss to me.

The receivables sale is reportable on 2022. Not eligible for installment sale treatment.

The more I know the more I don’t know.

qbteachmt

Level 15

For reference: "Or would I allocate some of the basis to the $185,000?"

No. It's already allocated and agreed upon between buyer and seller. It is what it is. It's the intangible part and is treated differently than the tangible part(s).

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