Hello. I am preparing an income tax return for an individual that has to report a substantial capital gain from the sale of a business asset by an S corp as reported on a form 1120S K1. I seem to remember that there is an exclusion from this tax for gains arriving from the sale of an asset used in a trade or business. The corporation engaged in rental real estate operations and the asset sold was its building. I have also reviewed notes I have from seminars that discussed this but cannot find anything regarding excluding this type of gain. Any help will be appreciated.