Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted May 11, 2020 11:46:22 PM

I dissolved my S corp in 2019 but it keeps asking me to enter an answer to the question: "If disposed of S corporation shares in 2019, check one". What should I do?

0 7 2683
7 Replies
Level 15
May 12, 2020 6:24:13 AM

You should do exactly that and "check one". Now what "one" is I have no clue, since you didn't provide any further information to work with.

 

Level 2
May 12, 2020 7:47:38 AM

Thanks for the quick response! Sorry, they the amount of characters I could use in my original message. These were the options:

  1. Check if complete disposition in fully-taxable transaction (complete lines 2 through 9)
  2. Check if disposition other than sale (see help)
  3. Check if sold on installment basis (complete Form 6252, do not complete lines 2 through 9)

It seems like none of these are fitting since this, is the explanation for "b":

Other dispositions include:
Gifted interest
Transferred interest so that it was not taxable
- Sold your interest to a related party

In the regular K-1 form it allowed me to select "None of the above". Any ideas?

Level 13
May 12, 2020 9:50:12 AM

A few additional facts would be good:

  • You indicate that you dissolved  the S corporation.  Did you sell any of the assets, either tangible or intangible to a third party?
  • Did you distribute any assets to shareholder's?
  • What was the liquidating distribution; only cash, assets, etc.
  • Have you maintained a basis schedule of your basis in the S corporation?

Level 2
May 12, 2020 10:10:50 AM

Did you sell any of the assets, either tangible or intangible to a third party?

No

 

Did you distribute any assets to shareholder's?

Yes, everything remaining, to the only shareholder - myself 

 

What was the liquidating distribution; only cash, assets, etc.
Only cash

 

Have you maintained a basis schedule of your basis in the S corporation?

I don't believe so

 

Thanks!

Level 1
Jul 13, 2020 6:00:48 PM

What did you wind up doing?
I have the exact same situation!

Level 2
Jul 13, 2020 6:35:51 PM

I believe the accountant told me to select "Check if disposition other than sale (see help)" because it wasn't a sale. Their help section was just inaccurate.

Level 1
Jul 14, 2020 1:09:00 PM

Thanks for the reply - that's what I went with.