shut down S Corp, received final K-1. (not a sale; just shut down the company). I understand that the distribution in excess of basis appears on Form 8949.
Let's say the final K-1 shows:
Distributions: 2500
Stock Basis before Distributions: 500
Gain recognized on excess distributions: 2000
On the Form 8949, should this appear as:
Proceeds: 0
Cost or other basis: -2000
OR, on the Form 8949 should this be:
Proceeds: 2500
Cost or other basis: 500
I understand the tax effect is identical. How should it appear on the form?
