if the assets were sold while owned by the S-corp, the sales would be reported on the S-corp return.
if the property (depreciable assets) were distributed to him they were deemed sold at FMV by the S-corp. this needs to be reported on its return. His basis in those assets would be their FMV. If converted to personal use any gain on sale is taxable but a loss is not deductible.
indicate final k-1
quickzoom to the disposition worksheet and enter the information
the note receivable and cash would be the proceeds.
the issue is that you need to know his tax basis before the distribution of these items,
in theory, if this was always an s corp and he was always the only shareholder, his basis before liquidation would be the same as what was received in liquidation.
form 7203 as part of his 1040 will also need to be completed.
