Best tax treatment for selling asset through S-Corp or Personal return

[desertchief]

I own an S-Corp, and separately I own a personal digital asset. from a tax perspective, is it better to sell the asset and report the income on my personal return, or is it better to transfer the asset to my S-Corp, sell it as an S-Corp asset, then transfer the income via wages to my personal return?  my gross personal yearly income would total less than 100k after the sale either way.

[Anonymous_]

I'm going to page @Mike9241, but note that, most importantly, the transaction must have economic substance which this proposed scenario seems to lack.

[Mike9241]

you accomplish nothing. the sale of the digital asset will be separately reported on the k-1 and will flow to your 1040. so increasing your salary for the gain really does nothing and would likely cost you more in payroll taxes. also your QBI deduction would likely be reduced.

[desertchief]

thank you for the response but not sure I understand this completely:

- if I sell the asset and report the income on my personal return, I pay 0 tax?

- if I sell the asset from the S-Corp, the S-Corp incurs no tax, but my personal return will need to show payroll taxes from the additional income received from the S-Corp?