sale of commercial property

Prodigalson
Prodigalson Member Posts: 2 Newcomer
in General

I have an s-corp. I am sole owner. The s-corp's only asset is a commerial office building. basis in the building is $486,000. I have $267,000 of depreciation over the years that was sritten off each year since 2002. I am selling the building next month for $575,000. $50,000 down and holding a note for 20 years @ 5% for remainder. Will IRS tax me on all of the depreciation recpature amount this year?

Answers

  • Prodigalson
    Prodigalson Member Posts: 2 Newcomer

    I have an s-corp. I am sole owner. The s-corp's only asset is a commerial office building. basis in the building is $486,000. I have $267,000 of depreciation over the years that was sritten off each year since 2002. I am selling the building next month for $575,000. $50,000 down and holding a note for 20 years @ 5 % for remainder. Will IRS tax me on all of the depreciation recpature amount this year?

    can anyone help out here?

  • KristineS
    KristineS FreeTaxUSA Agent Posts: 304 image
    Hi mooch91,

    Thanks for joining our Community and writing in with your question.

    FreeTaxUSA supports the filing of individual tax returns only, which includes Schedule K-1 information generated by the S-Corp business tax return, Form 1120 or 1120S.

    Since an S-Corp is considered a pass-through entity, your historical K-1 information in combination with your personal income tax return all matter in the year of sale.

    There may be other members of our Community forum that can answer your question based on their experience or knowledge, but generally using a licensed tax professional in combination with historical records of your S-Corp formation, basis, etc., may be the best way to determine the answer to your question. All facts and circumstances matter.

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