(**This update is also in a comment below the initial response)
To clarify, I dissolved the S-Corp at the end of 2016, which had 1000 shares of Capital Stock on the books from when I opened the company in 2008 with a $1000 check. I'm the sole owner and was told to close out the Stock in the following way:
On S-Corp tax return, enter the current basis for the stock on Form 8949, Part 2, with box F checked (no Form 1099-B). Enter a sales price of $0. This results in the capital loss, which is then entered on Form 1120S, Schedule D, Part 2, Line 10...and totaled on Line 15 (with instructions to include on K-1, Line 8a).
Working now on my personal tax return, TurboTax walked me through entering the capital loss from the S-Corp stock sale with the same basis/sale on a Form 8949 (with box F checked / no 1099-B), which was then entered on Schedule D, Part 2, Line 10. The same loss is entered on Schedule D, Part 2, Line 12 from my K-1, Part 3, Line 8a.
So, I'm not sure if the stock is considered the company's, or mine. I'm the 100% owner of the company, and the sale at dissolution was to clear it off the books.
Should I not be taking it as a capital loss on my personal taxes (Form 8949 & Schedule D, Part 2, Line 10) because I'm getting credit for the loss through the K-1?
Does that help?
Thanks!
