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tahoeg8r
New Member

My shares in a s-corp were bought out by another shareholder. Do I treat the proceeds as a typical stock cap gain on Schedule D? If so, how do I determine my cost basis.

 
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MinhT
Expert Alumni

My shares in a s-corp were bought out by another shareholder. Do I treat the proceeds as a typical stock cap gain on Schedule D? If so, how do I determine my cost basis.

You report the capital gain/loss on the sale of your S-Corp shares on Schedule D.

Determining your cost basis is a more complex process, especially if you have held the shares for a number of years.

This IRS document gives detailed explanation on how to calculate your cost basis:

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis


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MinhT
Expert Alumni

My shares in a s-corp were bought out by another shareholder. Do I treat the proceeds as a typical stock cap gain on Schedule D? If so, how do I determine my cost basis.

You report the capital gain/loss on the sale of your S-Corp shares on Schedule D.

Determining your cost basis is a more complex process, especially if you have held the shares for a number of years.

This IRS document gives detailed explanation on how to calculate your cost basis:

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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