Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

S-corp listed property

jlew1229
Level 3

Truck that is listed property on an S-corporation return converted to personal use.  If Section 179 was taken, does the S-corporation need to sell it to the shareholder for FMV and handle it like any other sale of asset.    or because business use fell below 50% I just have to calculate recapture of  depreciation over straight line. 

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

2 Comments 2
rbynaker
Level 13

That may depend on what actually happened.  Was personal use by the S Corp owner or another employee?  Was the vehicle retitled in the name of the user?

If retitled, it's treated as a sale at FMV.  If not, I would think the personal use would continue to be included every year in the W-2 of the person using it.

jlew1229
Level 3

He is the sole owner of the S Corp.  He is thinking about closing the business and keeping the truck personally   

0 Cheers