We do not want to be double taxed -
We have received both a 1099B and a Final K-1 from a privately owned S-Corp.
We have owned shared in this S-Corp from 1990 though 2020, they were purchased by another company and we were forced to sell our shares. We received a 1099B from the paying entity with 1a no. shares, 1c date sold, 1d proceeds, 5 non covered securities, 6 gross proceeded reported to IRS, but no cost basis in 1e.
1099B
From a previous post in Intuit – We put the cost basis to be equal to the proceeds so that the 1099B would show zero gain.
Final K-1
In the walk through in TurboTax we checked the radio button “I sold outright (complete disposition)” so that the Final K-1 box would be checked on Schedule k-1 form 1120S. then we selected “purchased”, filled in boxes – Acquisition Date, Sale Date, Sale Price, S Corporation Basis (that we calculate from K-1s from 1990 to 2020), then enter the K-1 as we received it.
Our concern was to make sure that the IRS received both 1099B and Final K1 from us as they did from other sources.
Is this a correct method?
We have seen other post to not enter the 1099B, but we thought this might flag an audit.
Thank you for your support -
