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- S Corp Gain (Loss) on Disposition of Section 179 Assets
S Corp Gain (Loss) on Disposition of Section 179 Assets
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Allen65
Level 1
02-25-2022
01:22 PM
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S Corp Gain (Loss) on Disposition of Section 179 Assets (sold autos) flowing to M-1 line 5a as nontaxable instead of taxable gain flowing to K-1.
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3 Comments 3
sjrcpa
Level 15
02-25-2022
02:01 PM
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"flowing to M-1 line 5a as nontaxable instead of taxable gain flowing to K-1"
Not quite.
M-1 Line 5a is income recorded on books not included on Sch K Line 1 - 10.
Gain on assets where 179 was used does not appear on hose lines.
It gets passed through separately to the shareholders as a statement.
Ex-AllStar
TexCPA
Level 3
08-13-2022
03:20 PM
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It seems wrong, but it is supposed to be on the M-1, because it goes directly to the shareholder's K-1 box 17K. So the amount is not on Schedule K per se. You should find a report attached with the shareholder's K-1 showing the Section 179 taken. That will be reported on the 1040.
