Hi David, this is my first time asking a question about TurboTax and I hope I’m doing it through the correct channel.
my husband sold his SCorp membership to the other partners in August 2019. The SCorp was at the same time closed and ex-partners re opened under a new SCorp.
The amount agreed for the membership interest was a total of 100k broken down into prior distributed profits of 60k, reimbursement for legal fees if 100k and purchase of the membership for 40k. Original contribution to the SCorp was 5k.
How Can I record this?
The cash received for this agreement was 55k in 2019 and we are supposed to receive remaining 45k in 2020
we received a K-1 with box 16 showing the amount of 40k.
Thank you in advance for your guidance.
