Estate shareholder of S-Corp

[taxladyworking]

Sole shareholder passed away in 2023 and probate has not been completed to transfer the company to the beneficiary who is the son of the sole shareholder, therefore the estate will receive a K-1 along with the original shareholder. Paperwork was filed to dissolve the company and the final return of the S-Corp will be filed for the 2023 tax year. The son setup an estate checking account under the estates EIN and the sale of the assets from the S-Corp were deposited into the estate checking instead of the S-Corp checking. How do you reflect the sale of the assets so they can be removed from the S-Corp return?  Also, the son transferred all deposited money received from the outstanding Receivables from the Corporation checking into the estate checking account....so would this be reflected as a Distibution by the estate on their K-1? Lastly, the son paid bills from the estate that belonged to the corporation so would those need to be included in the final return for the corporation or on the estates return?

My thoughts were to reflect only the income received and expenses paid from the corporation checking on the final tax return for the company. I would assume that the estates return would reflect all business transactions that went into and out of the estate checking account on the 2023 Form 1041, which would include the sale of assets. Any advice is appreciated.

[sjrcpa]

Why start over? Please don't.

https://accountants.intuit.com/community/proseries-tax-discussions/discussion/death-of-s-corp-shareh...