AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Expert: John Stancil, CPA Date: 7/17/2008 Subject: 1120 s balance sheet
Question husband and wife owners 50/50. we put prop. 2 lots into business name. did not owe any money on them market value 80000 a peice to build in future on. i know to put it in land owned but where does it goe in the liab. and equity part of the balance sheet? no loans.
also we purchased a vehicle for cash . 42000. wrote off 25000 heavy suv for depreciation where do we put this in both sides of balance sheet?
thanks alot John for your time
Answer Steve,
Thanks for your question.
The land would go on the balance sheet at your cost not FMV. Since there is no debt associated with it, it would be a capital contribution - equity. The vehicle would be recorded as an asset at cost. Show accumulated depreciation for the amount of depreciation taken.
