Bottlebot, Inc. an S Corporation had the following asset sales over the past three years. In year one, the company sold a car, purchase price $40,000, the company took $15,000 of depreciation and sold it for $8,000. In year two the company sold two assets, a machine the company purchased for $150,000 and depreciated for $80,000. They sold the machine for $185,000. The company also sold a warehouse used in the business. The company purchased the warehouse for $1,000,000 and put over $150,000 of improvements. They depreciated the warehouse and improvements $200,000. The warehouse sold for $1,150,000. In year three, the company sold another machine, they purchased for $200,000, depreciated $50,000 and sold for $100,000.

Advise as to the tax ramification to the shareholders, i.e. what flows-though to the shareholders related to the sales for the three year.

Answer rating: 100% (QA)

The tax ramifications to the shareholders of Bottlebot Inc would depend on the individual ... View the full answer