Business & farm

I made an attempt to address your basic inquiry in your other post but, essentially, you should seek professional tax guidance with respect to this transaction as well as ongoing operations going forward.

 

With respect to assets, you should show them as a disposition (but not sold nor for which you otherwise received compensation since this is a nonrecognition event) on your personal income tax return.

 

The assets you contribute to the corporation generally receive a carryover basis (increased by any gain recognized by you) which becomes your basis in the stock you receive, in return, from the corporation.

 

Again, you should consult, in-person, with an experienced tax professional.

 

See https://ttlc.intuit.com/community/business-taxes/discussion/transfer-of-assets-from-sole-proprietor-...

View solution in original post