for NY state
S-Corp, and I file Income
Tax in NJ.
Please advise for NJ & NY state tax and Federal tax
on whether corporate tax reporting
for S-Corp asset sales
and reflecting it into personal tax return
that I prepared
It's a small business (purchased on 2007) and I don't need to report Schedule L
but maintain for my own information:
Schedule L information before sales,
Equipment: 0 (21,725 - 21,725 deprecated)
GoodWill: 211,407 (No Amortization, acquired with business purchase)
Loan from Shareholder
Capital Stock: 254,000
Ratained Earning: -152,000
Store was sold at 70,000 (30K for Equipment & 40K for Good will).
=== Corporate Return 1120S
* In Corporate Return, form
- Equipment Sale went to Part III
Line 20: 30,000
Line 21&22: 21,725
Line 23: 0 (Ingored sale cost for now)
Line 24: 30,000
Line 25 a&b: 21,725
Line 30: 30,000
Line 31: 21,725
Line 32: 8,275
- Goodwill Sale went to Part I
Line 2 d: 40,000 e: 0 f: 211,407 g: -171,407
Line 6: 8275 from Part III
Line 7: -163,13240000
Line 13&17: 21,725
- Loss from Business (other than asset sales) for 2015: -1,000
* Schedule K-1
Line 1 (Ordinary Income
): 20,725 (21,725 - 1,000)
Line 9 (Net section 1231 gain/loss): -163,132
- Schedule E
Line A(j), D(j), Line 30, 32 & 41: 20,725 (from K-1 Line 1)
=> This went to 1040 Line 17
- Form 4797
Line 2(g), 7, 11, 17 & 18b: -163,132 (from K-1 Line 9)
=> This went to 1040 Line 14
1. Could you verify whether the way I handled asset sales
in Corporate & Personal report is correct?
2. My ex-accountant did not amortize goodwill, is it correct
to calculate loss with 0 amorization?
3. As you can see, stock value is 254K. But, if I add this year's
loss (+20725 - 163,132 = -142,407), retained earning
will become larger than stock value
(-152,000 - 142,407 = -294407) as shown below.
How do I handle this?
- Schedule L after sales:
Loan from Shareholder: 34,000 (70K repaid with sales proceed)
Other liabilities: 5,407
Capital Stock: 254,000
Ratained Earning: -294,407
4. In connection to item 3 above, there's 34K loan from shareholder
and retained earning larger than stock value.
How do I report Corporate Liquidation/Disolve
in personal return
1. Stock liquidation
2. Loss from Loan which cannot be repaid by Corporation.
5. This large loss from K-1 creates Net-Operating-Loss in personal return.
Is there any way to re-direct goodwill loss from
asset sales to Capital Loss
so I can carry all (except -3K) over
instead of offsetting this year's other personal income
I know I can carry NOL back or forward, but would like to
know whether I can make asset sales loss capital loss.