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Discussion Forum Index --> Basic Tax Questions --> Business Donates Vehicle
Discussion Forum Index --> Tax Questions --> Business Donates Vehicle
FLAcct (talk|edits) said:
| 24 March 2008
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| I have an S corp client who donated a business vehicle to a nonprofit organization last year. The organization is using the vehicle (not reselling it) and the fair market value of the vehicle has been established. It has already been fully depreciated by the S corp. I am wondering how this donation should be reported on the 1120S. Do I show the vehicle being sold for the FMV of the donation on 4797 and then take a charitable deduction for the FMV amount? This of course would net out to zero and would only make a difference if the stockholder wasn't able to deduct the charitable contribution on his 1040. Does anyone know the correct way to handle this?
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Belle (talk|edits) said:
| March 24, 2008
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| If it has been fully depreciated by the Corp - the basis is zero. Therefore there isn't a donation to show....
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FLAcct (talk|edits) said:
| 24 March 2008
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| But how do I remove the vehicle from the corp? Just credit vehicles and debit accum depre without running it through a 4797?
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Seaside CPA (talk|edits) said:
| 24 March 2008
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| Belle's correct. No basis left; no deduction. I would not put it on 4797. I would just remove it from books and depreciation schedule.
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