Laura C. asked
I bought out my business partner and gave him "clear blue sky" (which I sent him a 1099 for), then I gifted him a shop and pickup (which I sent him a 1099 for). Then I bought all the rest of the equipment from him (I did not send him a 1099 for this because a tax preparer said he will pay taxes on the gains when we do the final return). I am preparing my final tax return for the company and I am not sure how to handle the assets. Do I put in the purchase price? If I do that then I will also have to pay gains on the sale of the equipment. I have started my own LLC so I know I can turn around and put all that equipment on my new return but I don't feel that I should have to pay the gains on the equipment from the original partnership. I need help! One last thing...I gifted him my share of the shop and pickup what do I do with those assets on the final return?
May 26th, 2023
Allison L. answered
When you gift an asset, you do not send a 1099 as it implies an exchange for something in return, wh...
May 26th, 2023
Create an account to view answers and interact with the community!
If a rental property generates less income than its depreciation, such as a business gross income of 5k with a depreciation of 10k, does this mean the business is at a 5k loss for the year? Can the owner take a distribution tax-free from the business account in the future if the business makes more money? In other words, can the owner take 10k out as a distribution as opposed to income? When the building is sold, the depreciation gets added back for taxes, but if the owner never took this money because the rental never made enough, why is the owner responsible to pay on it?
April 26th, 2023
My father is selling his Farm house with buildings all sitting on 40 acres in Manitowoc county, Wisconsin. The 40 acres are technically two tax parcels split down the middle at 20 acres each. The house is on one of the 20 parcels and the unattached 2-car garage is on the other 20. He is selling it all. Will this property or a portion of this property qualify for the $500,000 exemption?
December 30th, 2024
Can I use my corporation to buy personal items like groceries, clothes, food, and medication for myself and my wife, and if not, how do I handle this on my taxes?
October 1st, 2024
What should be used as the depreciable basis for an LLC holding a Walgreens with a triple net lease, originally acquired in a 1031 exchange by our father in 2004-2005, and transferred to the trusts of the 3 sons in late 2015 after his passing in 2014?
October 3rd, 2024
I received a 1099-S for the sale of a mobile home and property from my father's wife's estate. The proceeds were split among her two sons and my father's son and me. The property was in Florida, and I live in Massachusetts. Do I need to report this, and if so, how should I report it?
July 23rd, 2023
