former owner has expenses related to S corp after sold

[nytcpa2012]

Owners sold S corp shares March 1, 2021. They are having to pay for the preparation of the 2021 corporate return related to the January and February 2021 data needed by the preparer.

Is there a way they can get a deduction for these expenses? Where would it be reported on their personal tax returns?

[taxiowa · Accepted solution]

ST capital loss.  Payments would take same characteristic as the sale of the S corporation. 0 selling price and prep fees as cost.

[rcherenson]

Would this also apply to a loss? Client filed final S-Corp return this year and dissolved the corp but had a low 5 figure net capital loss to carryover as well as the tax prep fees. I was planning to flow through the loss to a personal capital loss since it was a single member S Corp. Had not yet researched that since I don't have to deal with until next year, but if you know, advice appreciated!