"George" <george[at]nospam.invalid> wrote in message
news:0uCdnaReG-PqJULanZ2dnUVZ_oudnZ2d[at]comcast.com...
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Probably some interest income, administrative expenses and distributions to
the shareholders.





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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I am a 1/3 partner in a S corp. We started it 15 years ago with the
objective to rent equipment. We each put in $13,000 to buy the
equipment. It has only made either very small gains or losses over the
years (+/- $200). The partners have drifted apart and we decided to sell
the equipment. So late last year one of the partners sold off the
equipment.

I received a K-1 showing a line 9 Net section 1231 gain of $22,000. The
proceeds from the sale are sitting in a money market account.

What are the tax implications? It would seem the $22,000 gets reported
on schedule D and will be income to me for 2007. Next the corporation
will be dissolved. How will that be reflected this year?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >