PatriciaV
Expert Alumni

Deductions & credits

Yes, you should have received two Schedule K-1s. However, the S-Corp should report that you each owned half the shares and received half the income/loss. Even though you had joint tenancy, that only affects who controls the stock and how the investment is handled after one spouse passes. 

 

The K-1 for your spouse should show half the activity through November. And your K-1 should show half of the activity through November and all the activity for December. At the end of the year, you own 100% of the shares in the company.

 

Enter the K-1s exactly as they report activity for the year. Answer any stock questions as of the end of the year, unless they specifically relate to the change in ownership after November.

 

You may wish to consult a local attorney about the joint tenancy, preferably one with experience and knowledge of your personal tax situation.

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