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Richard
Richard, Tax Attorney
Category: Tax
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Experience:  29 years of experience as a tax, real estate, and business attorney.
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Had a Sub S Corp. Sold the business but not all of the A/R.

Resolved Question:

Had a Sub S Corp. Sold the business but not all of the A/R. This is first full year since the sale. Some A/R have been received but some are to be considered bad debts. How is this to be shown on individual return?
Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

Good afternoon. You would report this as income on Schdule C of your 1040, whether you are collecting money attributable to A/R or bad debts previously written off.

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 6 years ago.

There is no active business except for the collection of these A/R that were not sold with the S Corp. Is a Schedule C filed just to cover the amounts received & the bad debts that are being written off?

 

Thanks

Expert:  Richard replied 6 years ago.
You have to report them somewhere....You can either put them on Schedule C or you can include them on other income on the first page of your 1040.
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