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Posted by Haskel LaPort on March 18, 2008, 4:10 pm
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>I am a 1/3 partner in a S corp. We started it 15 years ago with the
>objective to rent equipment. We each put in $13,000 to buy the equipment.
>It has only made either very small gains or losses over the years (+/-
>$200). The partners have drifted apart and we decided to sell the
>equipment. So late last year one of the partners sold off the equipment.
>
> I received a K-1 showing a line 9 Net section 1231 gain of $22,000. The
> proceeds from the sale are sitting in a money market account.
>
> What are the tax implications? It would seem the $22,000 gets reported on
> schedule D and will be income to me for 2007. Next the corporation will be
> dissolved. How will that be reflected this year?
Probably some interest income, administrative expenses and distributions to
the shareholders.
>
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--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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