Schedule K-1 2023 Final K-1 Checkbox - Disposition of S-Corp interest information

[jmzchz5560]

Closed this LLC with S-Corp election ending 2023. In final review, TT will not let me skip Part II Disposition of S Corporation Shares section. I had no shares in the LLC, was only managing member. Form 7203 was completed. Basis beginning of Year $9309, Stock basis end of corporation tax year is $0  == TT will not let me e-file my final returns. due to this item?  Please help?

[jmzchz5560]

A little more information. CPA who did K-1 S-Corp also completed Form 966  Corporate Dissolution or Liquidation under code of Section 331 -- with the Form 7203 showing Stock Basis beginning of year $9309, end of year $0 - again no shares listed on this entity.

[LeticiaF1]

Can you please clarify, what error you are getting in the program? 

[jmzchz5560]

Leticia,

The problem in the program is that when entering the Schedule K-1 information, and checking Final K-1, the program requires that you click on K-1 Additional Information to enter at least one of choices of Disposition on Part II, Line 1a, 1b, or 1c be chosen. However, in the Easystep process of entering the K-1 it has choices of these 3 choices plus "None of the above" on how did you dispose of K-1 shares.  As stated this entity is a single member LLC, filing as S-Corporation status for tax purposes, with a Corporate Dissolution Liquidation Form 966 and a completed Form 7203 completed. Even though the 7203 form was completed in TT properly - the program will not let you e-file unless share disposition choice 1a-1b-1c is chosen. How do you override this to allow e-file to complete?  Attaching some screen shots.   

[Rick19744]

A few questions:

• Your facts don't make sense.  Why are you receiving a K-1 if you indicate "I don't own any shares"?
• If you don't own any shares, what is the basis related to?
• How many years have you received a K-1?
• What other boxes on the K-1 have amounts in them?
• Did you receive a distribution in the final year?
• If this is a final K-1, you can't skip the disposition of S corporation shares section.  That is the only way to handle this transaction correctly within TT.