My husband owned shares in a family corporation which he inherited from his aunt. All the assets of the corporation (farm land) were sold and the corporation was dissolved. We received a Schedule K-1 for 2022 which is marked as the Final K-1. It has entries in Box 2 (loss), Box 9, Box 16 (code D), and Box 17 (code AC). I'm trying to input the information in TurboTax and have several questions. I check the box 'This corporation ended in 2022'. Then it asks how you disposed of this S corporation. The options are: I sold it outright (complete dissolution), I sold it and am receiving payments, I disposed of it but not by selling it, and None of the above. If I select I sold it outright (complete dissolution), then TurboTax is counting the sales price and the amount from the K-1 and doubling the income on my return. Which option should I select? Then because Box 2 was a loss, TurboTax brings up form 7203 and says to fill in the information. I'm not sure what to fill in on this form. I also don't know where to enter the cost basis value from when my husband inherited this from his aunt. Any help with this will be appreciated!
