vahaudio
Level 1
12-07-2019
08:53 AM
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Client owned 20% share in an s-corp that sold in 2015. Their share of the sale was reported on their 2016 schedule K-1, Their 2017 K-1 showed some losses, and they received no schedule K-1 in 2018. Neither of the last K-1's received were "final". If I choose complete disposition, I wouldn't want to show the same proceeds amount that was provided on the 2016 K-1. This would result in additional taxes owed. That being said, how would we properly dispose of the K-1 on the taxpayers individual return?
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George4Tacks
Level 15
12-07-2019
08:53 AM
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Amend 2015 to properly dispose of the asset and any suspended losses or income from negative basis. Before doing that decide whether it is 2015 or 2016 that the S-Corp went away.
Answers are easy. Questions are hard!
sjrcpa
Level 15
12-07-2019
08:53 AM
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or 2017. @vahaudio If client sold their interest in 2015, they should not have received K-1s for 2016 or 2017
The more I know the more I don’t know.
The more I know the more I don’t know.
George4Tacks
Level 15
12-07-2019
08:53 AM
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Maybe it was a private sale and the preparer of the 1120S never knew the 20% owner left. One of the many reasons I have to do S-Corps. The think being a corporation is cool, but they have no idea of what they got themselves into.
Answers are easy. Questions are hard!
Answers are easy. Questions are hard!
