palmasservices
Level 3

I have a client that Purchase a Business under the S-Corp. for the amount of $58,000 which $14,080 was Furniture and Fixed Assets and the rest is the Business Name. Where in the 1120s & Balance Sheet would go this information. It was Purchase with business and personal accounts which the Owner wants the Corp to repay him back in the future?

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dkh
Level 15

Research  Goodwill      for your answer to the "rest is the Business Name" question

 

qbteachmt
Level 15

"which the Owner wants the Corp to repay him back in the future?"

If it looks like a shareholder loan and acts like a shareholder loan, it gets documented as a shareholder loan.

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palmasservices
Level 3

Thank you.  

Do I have to file form 8594 for the Purchase of the Business?

Sorry for the additional question?

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qbteachmt
Level 15

You'll need to read "Who Must File" here:

https://www.irs.gov/instructions/i8594

 

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palmasservices
Level 3

Thank you  so much 

View solution in original post

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Terry53029
Level 14
Level 14
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