Discussion:Reporting Repossession of Business Equip.?
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Reporting Repossession of Business Equip.?
Machster179 (talk|edits) said: | 1 April 2008 |
| One of my clients fell on hard times last year, he was setup as a Partnership LLC and his partner left the business (partner that left was only a 1% partner).
Two questions.. 1. I assume its ok to zero out all of the 1065 being there was no activity in the partnership and send in as a final and then transfer all of the assets etc. to a schedule C for a Single Member LLC? 2. Client had some business equipment repossessed that he still owed money on so as far as I can see the loan amount at time of repossesion is reported as sales price of the assets? (there is remaining basis in this equipment) This client is filing for bankruptcy in 2008 but that won't affect his 2007 tax returns? Any help would be appreciated. | |
Machster179 (talk|edits) said: | 2 April 2008 |
| Anybody have any suggestions? | |
RoyDaleOne (talk|edits) said: | 2 April 2008 |
| The loan owed at the time of repossession is the selling price only for the amount that the loan was reduced by the re-possessor as a result of the repossession. In addition, the creditor most likely have repossession costs for which your client is responsible, in addition to any deficiency on the loan. My thinking on your question. | |
Machster179 (talk|edits) said: | 2 April 2008 |
| Thanks for the info, much appreciated | |
