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Client is an S-Corp that owns a mobile home park in CA. Sold park and dissolved the corp. CA Return shows gain on the sale of the assets and taxes the corp. Why?

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Level 1

More details:  The K-1s are also showing the gain on sale of the assets as taxable to the shareholders.  I'm just confused on why the 100S is showing a taxable gain to the corporation for the sale as well as the shareholders.

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Level 15

CA S Corps pay tax. 1.5% I think - CA preparers correct me if I'm wrong.. Then the shareholders also get taxed on the K-1 income.


ex-AllStar

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Level 15

CA S Corps pay tax. 1.5% I think - CA preparers correct me if I'm wrong.. Then the shareholders also get taxed on the K-1 income.


ex-AllStar

View solution in original post

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Level 8
on the GROSS!!!
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