Thank you JamesG1 for your quick response. Follow up question...
I placed the sale of the vehicle on Part III Section 1245 per your advice. The gain now appears on Line 4 Net Gain from Form 4797 of my 1120S return which now shows a profit on the 1120S, but doesn't anything go on the K-1 showing the sale of the vehicle or showing the deprecation recapture that needs to be pass through onto the shareholders personal tax return? Right now the only item appearing on my K-1 is Line 1 Ordinary Income (Profit) of $21,128. I thought I would need to have something appear on my K-1 either on line 9 (Net LT Gain) or on line 12 (Net Section 1231 Gain - Form 4797) showing the actual gain of $20,040 of the vehicle and the depreciation I recaptured of $32,342 and that would transfer over onto my personal 1040 tax return on a schedule D for the Capital gain of $20,040 and pay tax on the Depreciation Recapture of $32,342 on Form 4797 on my person tax return - am I wrong thinking that?
Here is what my 4797 looks like
Line 20 Gross Price $21,000
Line 21 Cost or other basis $33,302
Line 22 Deprec. $32,342
Line 23 Adjusted Basis $960
Line 24 Total Gain $20,040
Summary of Part III Gains
Line 30 Total Gains $20,0040
Line 31 Add property columns A through D $20,040
