Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

Sale of Business in S corp

Level 1

SCorp has two remaining members. One Old member that had in the buy out that he would get X amount if the business was sold.

Is  the amount that was paid a cost of Sale, or a distribution  of dividend?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

3 Comments 3
Level 15

"Is the amount that was paid a cost of Sale, or a distribution of dividend?"

There is never Dividend for S corp and this is not a Cost of Sales.

And it matters if this is Entity sale, or Assets/Liability, or only that one "old member" is selling? And his Basis, compared to "X" amount? Who is this sold to; another shareholder?

Have you worked on business sales in the past, or is this your first?

"Level Up" is a gaming function, not a real life function.
Level 14
Level 14

An interesting article for you to read in tax easy terms. You may want to get a mentor on this one.


Level 1


 Ultimately I issued a form 8594  to notify the  seller of the purchase price.

A good stickey wicket

0 Cheers