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Where do we report? we sold equipment to a third party, and we are receiving payments over 3 years. how do we declare this on the 1120S?

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Level 12

"our company sold equipment, and is receiving payments over a three year period. This money is distributed among four shareholders. How do we classify this, as it is not revenue but a repayment"

You are confused. The Sale is a sale. The taking of money might be possible because someone is making payments on the sale. You don't decide what is or is not revenue vs repayment. Circumstances make it clear.

You do seem to be lost on the internet. This is not a TurboTax community.

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"Level Up" is a gaming function, not a real life function.

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Level 15

 Form 4797 and possibly Form 6252 (after depreciation is accounted for).

Former Chump... umm.... AllStar.
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Level 1

4797 is a capital gains dividends form.

our company sold equipment, and is receiving payments over a three year period. This money is distributed among four shareholders. How do we classify this, as it is not revenue but a repayment 

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Level 15

I think you have some reading to do

https://www.irs.gov/publications/p544

@abctax55 gave you the correct answer to your question. Are you doing the tax return or just trying to create some type of bookkeeping entry?


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@escalante wrote:

4797 is a capital gains dividends form.

 


It is ?

https://search.yahoo.com/yhs/search?hspart=avg&hsimp=yhs-securebrowser&type=7153&param1=3b6d23d0c185...

Perhaps the folks over here can be more helpful:

https://ttlc.intuit.com/community/taxes/discussion/02/202

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
Highlighted
Level 12

"our company sold equipment, and is receiving payments over a three year period. This money is distributed among four shareholders. How do we classify this, as it is not revenue but a repayment"

You are confused. The Sale is a sale. The taking of money might be possible because someone is making payments on the sale. You don't decide what is or is not revenue vs repayment. Circumstances make it clear.

You do seem to be lost on the internet. This is not a TurboTax community.

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post