topic Re: S Corporation in Business & farm

S Corporation

Looney1966 — Tue, 10 Feb 2026 09:15:02 GMT

I sold my Book of business(I have a S Corporation), I also sold just the computers and there was also good will assigned. Does the sale get recorded under the S Corporation tax return or my personal taxes.

Re: S Corporation

MinhT1 — Mon, 29 Jan 2024 16:00:30 GMT

The sale of these items is reported on your S-Corp's tax return (form 1120S) as they belong to the S-Corp.

Re: S Corporation

Mike9241 — Mon, 29 Jan 2024 17:20:15 GMT

you also need to include form 8594 - Asset Acquistion Statement. the IRS will use it to compare your allocations to what was entered on a similar form the buyer was supposed to file with their return.

Re: S Corporation

Looney1966 — Mon, 29 Jan 2024 18:06:19 GMT

So I sell of the few assets I have(I got $5K for them) and then I got $210K for the book of business and then had Covenant not to compete of $5K. I understand how i sell the assets off, but I have no basis on the book of business(since I built it over time. How do I treat that part of the sale? I didn't sell the S Corp just the book of business. The S Corp will be final with this filing.

Re: S Corporation

RobertB4444 — Mon, 29 Jan 2024 18:25:03 GMT

As you have built up the business over time your basis in the business has built up as well. The software will ask if this is the final return for the business. When you say yes. it will walk you through the steps for the sale and how much you received.

@Looney1966