oh-oh! the advice given by the employee tax expert appears to go against what the instructions for section 1202 regarding K-1s. which states, (our investment club is a pass-through entity):
- Schedule K-1: QSBS gains received through a pass-through entity will be reported on line 10 of the k-1 received through the 1120S (S Corporation) or line 11 of the k-1 received through a 1065 (Partnership) tax return. Attached to the k-1 will be a statement for each sale or exchange (a) the name of the corporation that issued the QSB stock, (b) the partner’s share of the partnership’s adjusted basis and sales price of the QSB stock, and (c) the dates the QSB stock was bought and sold.
