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I recorded $2,500 in non cash contributions on a S-Corp. Now my Balance Sheet is out of balance of course. How do I offset this? Thanks!!

Level 1
 
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This is a Schedule M book-tax difference.

Be aware that you only get FMV as a deduction if the property would have generated capital gains, not ordinary income, if sold.

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11 Replies 11

This is a Schedule M book-tax difference.

Be aware that you only get FMV as a deduction if the property would have generated capital gains, not ordinary income, if sold.

View solution in original post

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Level 1
Thank you Phoebe!!
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Level 15

Add a non cash asset?


ex-AllStar
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Level 1
my assets are more than my Liabilities & equity with this non cash contribution.
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Level 15
What was the contributed that was non cash?
This week's special - free roadrunner dinner with every return (legal disclaimer - you catch it and we'll cook it)
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Level 15
I think maybe a deduction of non-cash to Goodwill or something like that. As opposed to a shareholder contribution of stuff, you gave away stuff?

ex-AllStar
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Level 15
I'm not sure.  I wish Intuit hadn't dropped the mind reading courses.  Although the new hostage crisis classes seem to be helpful.
This week's special - free roadrunner dinner with every return (legal disclaimer - you catch it and we'll cook it)
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Level 1
It was office furniture donated to Habitat for Humanity
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Your deduction is limited to basis (zero!) because the depreciation recapture would be ordinary if it had been sold.
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Level 1
Thank You! Yes you are right!
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Level 15

A reduction in non-cash asset given away?


ex-AllStar
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