Hi, I have a very small S-Corp I'm closing at year end. I've always been the only owner and employee for the last 20 years.
All assets are fully depreciated under section 179. These are on the books at $10,0000. No liabilities.
$8,000 of the $10,000 is for office equipment over 10 years old, about 20 individual items. Best guess at FMV is $1,000.
$2,000 of the $10,000 is for a computer purchased 4 years ago. Best guess at FMV is $300.
I plan to keep the assets personally. I'm wondering how to account for this for the S-Corp and how to arrive at FMV for the assets?
Considering the low materialtiy, it would seem pretty simple to use my best estimates and report Other Income of $1,300 for the S-Corp. But I'm not sure if that would pass for the IRS. What is the correct way to handle this?
Any thoughts would be greatly appreciated. Thanks!
