RobertB4444
Expert Alumni

Business & farm

You shouldn't be entering your sale and the gain on it into the K-1s at all.  That's a personal gain for your personal return.  You should enter your sale of the S-corp shares into the schedule D section of your personal return showing the full purchase price you received and the full basis that is deducted so you have a net gain of $3000 on your personal return to pay capital gains tax on.

 

The K-1 should only reflect your share of the earnings through the date of the year that you sold your interest.  If should be marked 'final K-1' and reflect a prorated percentage of ownership based on the date of transfer.  The same is true of your two (former) partners who should be absorbing your shares on the K-1s.  The sale itself is just a sale of stock for which you did not receive a 1099-B.

 

@bchakka11 

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