Thank you so much for your replied.  They sold the business, and it will be their final K-1.

Sold the business meaning:

1) sold the assets?

or

2) sold the stock?

Different treatment depending on which one....

They sold the assets and goodwill, thanks!

Followed by a distribution of all proceeds and a liquidation of the S Corp?

Otherwise it's not a final return.

Picky, picky 😜

Thank for getting back to me on my question. 

You are right, it won't be the final k-1, just confirmed with them and now they want to keep the corporation open for a little longer maybe will close in 2024.

Therefore, I just need to report the sales of the business on the return, and pass the capital gain through the k-1s, and when the corporation liquidate then they will use their basis to figure out the gain or loss on their personal return?

Thank you in advance!

Thank you so much!!  Happy Holidays to you and your family!

Therefore, I just need to report the sales of the business on the return, and pass the capital gain through the k-1s, and when the corporation liquidate then they will use their basis to figure out the gain or loss on their personal return?

Correct.

Thank you so much for your guidance!   

Happy New Year to you and your family!!

You're welcome. Happy New Year!