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For a sale of shares of a listed corporation, the stockbroker reports the transaction to the IRS and the seller by 1099B reporting. When a shareholder sells his shares in a private corporation to another shareholder or an outside person, what the corporation should report to the IRS, the buyer, and the seller?
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The coeporation reports nothing to the IRS, How would the corp know what Shareholder A sold his shares to Shareholder B for?
Seller is on the honor system to report the sal.e.
It is Buyer's responsibility to kep track of his basis in the stock.
The more I know the more I don’t know.
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"...the stockbroker reports". NOT the Corporation (think IBM, or AT&T).
This is because the stock is held in an investment account; stock in a private corp generally isn't.
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Is this an "S" Corp? If so, there are a few issues to deal with... NMI.
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Greetings, I have a situation where I was granted shares in a private company and needed to buy in for those shares for which I have a cost basis. This company was then sold to another private company and my shares vested and I received proceeds after about five years. What form would I enter this transaction under. There will be no 1099B type from coming from this transaction nor is it reflected in my wages. I just received a check. Thank you.
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Hi there,
You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.
Cheers!
