Selling s corp

[ls29]

When selling inventory, equipment, building and real estate of an S-corp, do all these items go on the K-1 of the S corp tax return or are they considered as capital gains/income on the individual tax return?  The S corp shares were not actually sold.

[Critter-3]

ALL are sold by the company and are reported on the 1120S ...  inventory is ordinary income and the assets get sold thru the asset section.   

[Mike9241]

both the buyer and seller of a business are supposed to attach form 8594 to the appropriate tax return.

https://www.irs.gov/pub/irs-pdf/f8594.pdf 

the purpose of the form is to make sure the buyer and seller allocate the price exactly the same. 

[Critter-3]

If you are selling off the pieces of the business to different people then  my answer stands ... but if you are selling off the entire business to one person lock, stock and barrel then the use of the form 8594 is correct.