How to Report Sale of S Corporation

[mark30504]

I was a 50% owner of a S Corporation. I sold my 50% to someone interested in taking over my part of the business. The business is still in operation. The transaction was pretty straight forward. For X amount of dollars, I sold my S Corp shares and he took over my position at the company. When leaving I considered non of the funds in the company account to be mine. There was inventory and some equipment that the company owned but the money I received included transfer of this ownership to the new owner. Want to be IRS Compliant are report correctly

[Mike9241]

you have a capital gain or loss. you use the capital asset sales worksheet. the sales price is the proceeds. the cost is your tax basis + any expenses of the sale.