Responses to your follow-up reply:
- While you may not technically own any shares, for tax purposes you in fact own 100%; so essentially all or any shares.
- You should select "disposed of but not by selling". Don't get hung up on nomenclature. Disposed and liquidated result in the same tax impact.
- Next what you need to do is update your tax basis for the applicable lines on the K-1, EXCEPT for any distributions. The beginning point for this is the beginning of the year basis figure of $9,309.
- The screen shot you shared (K-1 input screen) will then need to be completed and you have all this information for lines 2-7. Not sure if TT will automatically populate line 8; assuming it does.
- line 2 is the date of the liquidating distribution
- line 3 is the date you elected S corporation status; assuming this is the same date as you organized your LLC
- line 4 - just enter "purchased"
- line 5 is your liquidating distribution
- line 7 is your basis as determined above
- Unless you input the above, TT will not be able to determine you overall gain or loss on the transaction
*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.
