Some comments which will hopefully help:
- I assume when you state 2024 version of TT, this is the software for 2023 tax returns. Would make sense since you indicate you are using the online version and the 2024 return software is not out yet.
- As a shareholder in an S corp, you should be maintaining your tax basis.
- Not sure what you mean when you state "The company's CPA put a note on the K-1 to enter the loss on my personal taxes."
- How does this individual know that you have a loss on the sale?
- Since you indicate that you only sold "a majority" of your stock and not ALL of your stock, your situation is somewhat different than most of the questions on this matter. Generally, those that ask have sold ALL their stock.
- The other issue that has not been addressed is the timing of the sale. That will impact how you determine your basis and eventual gain or loss.
- So when did you sell your stock?
- What you can do at this point is enter the information from the K-1 just as you have in any other year.
- As I'm typing, I'm wondering if you have had any at-risk or basis (lack of) if the company passed out losses to the shareholder's? This could add to the complexity.
- Answer these questions from above:
- Have you been maintaining your tax basis in the S corporation?
- Have you had any basis or at-risk limitation on losses in the past?
- When did you sell your stock (what month)?
- Just clarify that you only sold "a majority" and not all of your stock.
- How did the sale of your stock occur? Redeemed by the corporation or purchased by another individual?
*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.
