My husband has a S-Corp that owns his restaurant of 5 years with another shareholder. He owns 55%. The restaurant was sold in April 2024 at a loss. The S-Corp filed taxes and we were provided a Schedule K-1 to file our personal tax return. The K-1 Box 1 has a business loss of -9,965 and Box 9 has a 1231 Loss of -51,186.
When I entered those numbers into TT 1140S under K-1, I was prompted to put in the S-Corp purchased date and sold date. There is also an additional form stating for the Sale of S Corp referring Box 17, Code K. However, my K-1 did not have a code "K" in box 17. Should I select the option "Disposition other than sale" ? I am surprise to see that the 1231 Loss did not lower our adjusted gross income.
