TaxGuyBill
Level 15
12-13-2020
12:50 PM
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The same thing applies to a S-corporation. Different asset may have gain, loss, depreciation recapture, 1231 gain/loss that each needs to be reported separately. Grouping them may result in the wrong results going to the K-1.
Yes, the sales price needs to be allocated. If the agreement does not state such an allocation, you must allocate it based on the Fair Market Value of each item.