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S Corp

Treasury Stock, S Corp dissolution

When an S Corp dissolves, how is Treasury Stock treated for tax purposes? Instead of taking dividends, the S Corp used cash to buy Treasury Stock, effectively putting money in their individual pockets. When the S Corp dissolves, how is the Treasury Stock treated for tax purposes to the individuals?

Good and bad of S Corp investing in home with employees

Hey Linda,

my dad and mom own a pawn shop that is setup as an S Corp. We want to buy a home down by the lake for me to live in and for them to also use when they want to. I don't know how many days I'll start off staying there, but eventually I may just live there full time.

What is the good and bad of the S Corp investing in this house with us? My dad is pretty sure it is legal for it to invest, he just doesn't know what the ups and downs of it are regarding taxes? Will it save us some money? Will it cost us more?

Thanks!

David

C corp conversion to S Corp , capital loss question

I was told when I converted from a C corp 3 years ago to an S corp to get appraisal values on all the real estate which I did. Now I find that 3 years later some of the properties have decreased by 20%.
1. Can I make use of this "negative capital gain". otherwise what was the purpose of valuing the properties at the time of the conversion.
I am being told roughly 35% of the sale value as it is all written off to the corp and then the distribution is taxed at my income level and not at a dividend level or at a capital gains level.

S Corp required Distributions?

Hi Linda,

941 Reporting - S Corp w/ fluctuating income

Hello !

Entertainment Deducations

Hi,

My husband and I own a small company. One other employee. All 3 off us our on the payrool. My husband and I shareholder employees.

1st question...can we write off team building or entertainment and pay with corporate costs..nothing lavish?

2nd Question...the person who drew up my shareholders agreement said we can only take "distributions" if we had less than a certain percent of debt..or equity in the company. We have not taken any distributions..we barely just started drawing a salary in october as we are a new company. Have you ever heard of this?

Thanks so much!

Reporting buyout of one partner in a 3-person S Corp

We are a three-person S Corp. One partner is leaving and we are buying her shares for $6,000. We each have 100 shares. Where on the 1120S do I report the $6000 expense for buying her shares, or is this not an expense at all?

thanks.

Assets purchased through an S Corp

My husband of 7 years owned his own buiness which remained his own although I am on the bank accounts. I began to work in an addition to his business nights and weekends taking no pay. All the monies remained in the corp. We worked together and he intern bought a 200,000 racecar, 50,000 race trailer, much racing equip,and a sports car. All his taxes were paid through our personal his gross went from 640,000 up to 1.2 mil and now back to 640,000 as building has slowed. He is now divorcing me and says all that was purchased through his business in not community propery. Is this true?

LLC (partnership) basis created by distribution form an S Corp

How can cash transferred from an S Corp to an LLC (partnership) increase the Partners Capital Account - basis in the partnership?

s corp vehicle purchase

Hi Linda,
I use one of my vehicles solely for business use and am told that the s-corp should own it. I live in WI. It's a new vehicle w/ a balance remaining on the loan. Do I just transfer the title and make payments w/ the s-corp account or does the s-corp need to take a loan to buy the vehicle?
Thanks in advance!

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