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Had a Sub S Corp. Sold the business but not all of the A/R.

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This is first full year...
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: 7 years ago.Category: Tax
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Answered in 1 minute by:
12/2/2010
Tax Professional: Richard, Tax Attorney replied 7 years ago
Richard
Richard, Tax Attorney
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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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Customer reply replied 7 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

Tax Professional: Richard, Tax Attorney replied 7 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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