A few comments:
- As has been noted, the form 8594 is a key form that needs to be completed by both the buyer and seller (which means both forms need to match).
- If there is a noncompete agreement, I would recommend that this be a separate agreement.
- There is no mention if this was a cash deal or if there is an installment sale.
- If cash and the S corp will be done, then as noted, a final return needs to be completed.
- If there is an installment sale, there are some additional steps and the order of the steps is critical
- Regardless of whether this is a final S corp return, hopefully you have maintained a basis schedule of your investment in the S corporation. Without this, you will not be able to determine your overall gain or loss
- If a final S corp return, don't forget to contact your Secretary of State and dissolve the corporation
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
