Distribution of installment sale out of S Corp
If I distribute an installment sale note out of an S Corp to the shareholders does this trigger the recognition of the deferred gain all in one year?
1
525
at9BaklKeqlllsab8P4pmk
jmay
Questions asked: 2
Questions answered: 3
Points earned: 3
Questions answered: 3
Points earned: 3
Certified ProAdvisor
Certified ProAdvisors have successfully completed an extensive and rigorous QuickBooks certification program.
ProAdvisor
Members of the QuickBooks ProAdvisor Program
01/07/09 11:34am PST
Viewed by asker 01/19/09 8:07am PST
Viewed by asker 01/19/09 8:07am PST
This post is closed to new replies
2 Replies
01/15/09 11:42am PST
Jmay, you have to remember that S corp is a passthrough entity. when this kind of situation arises, any and all unpaid proceeds shall be deffered untill they are being paid or realize.
01/16/09 4:30pm PST
Latest post
The solution
distribution from s-corp or corp triggers recognition of gain unless it is a liquidating dividend. think of it as distribution at FMV unless the liquidate exception applies. This was correct 5 yrs ago but may have changed since then. research installment sale and liquidation.
