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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!!

Marianne436
Level 1
 
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PhoebeRoberts
Level 9
Level 9

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
PhoebeRoberts
Level 9
Level 9

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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Marianne436
Level 1
Thank you Phoebe!!
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George4Tacks
Level 15

Add a non cash asset?


ex-AllStar
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Marianne436
Level 1
my assets are more than my Liabilities & equity with this non cash contribution.
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IRonMaN
Level 15
What was the contributed that was non cash?
ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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George4Tacks
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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IRonMaN
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.
ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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Marianne436
Level 1
It was office furniture donated to Habitat for Humanity
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PhoebeRoberts
Level 9
Level 9
Your deduction is limited to basis (zero!) because the depreciation recapture would be ordinary if it had been sold.
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Marianne436
Level 1
Thank You! Yes you are right!
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George4Tacks
Level 15

A reduction in non-cash asset given away?


ex-AllStar
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