Where do I report the sale of stock in an S-Corp? I received a K-1 for 2018 to record my income distribution, but it didn't include the stock sale proceeds that occurred.

[LudwigVan_fan · Accepted solution]

The K-1 you received reflects your share of the current year ordinary income/loss and separately stated items.  Use these items to compute the basis in your stock as of the date you sold them.

The sale of the stock would go on Sch D, along with any other capital asset sales.  The proceeds would be the selling price, and the basis would be your computed basis after taking into account all the items that increase/decrease the basis of the stock during the time frame you owned the stock.

The difference between sale price and adjusted basis would be the gain/loss and depending on the holding period, long or short term gain.

https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

[mmsecase]

I get the tax position of your answer to report the net gain, but where do you walk it through Turbo tax?

[LudwigVan_fan]

I'm not an expert on using Turbo Tax...I know the bare basics.  Ultimately the sale and its gain/loss end up on Sch D.   If by chance (and probably didn't) you received a F1099, you would go to personal income, where you enter F1099B.

Otherwise, go through the step by step instructions for personal income and you should eventually get to a questions that asks    "Did you sell any investments in 2019?"

Say yes and go through the steps there.

Sorry, but I don't know TT and that's the best I can do.   Or, you can try going through the Forms tab??  Find Sch D and work though that. If you do that route, look at the QuickZoom boxes that are there.  They may guide you to worksheets.  For example, at the Top of Sch D, there is a QuickZoom link to Capital Gain Transaction Worksheet.

Good Luck

[DawnC]

Since Champ LudwigVan_fan has provided you with the helpful information you need to calculate your basis, please refer to the step by step instructions below if you need assistance finding where to enter the data in TurboTax.   I am not sure if you are using Online or Desktop, but the instructions are the same, barring minor differences.

1. Sign in to (Pick up where you left off) or open your tax return.
2. Type stock sales into the search bar and hit enter.
3. Use the Jump to stock sales link in the search results to get to the Investments section.
4. If you already started the transaction, click on Edit next to it to review it, or
5. Click on Add more sales.
6. Answer yes (if you did) or no (if you didn't) to the Did you get a 1099-B for the sales? question. 
7. Choose Stocks (non-employee) stock.
8. Enter a description, number of shares, sold date, and the proceeds.
9. Continue through the next few screens to enter your per-share basis and any related adjustments.

You will be shown a summary of your entry and the gain/loss information will be transferred to Schedule D and Form 8949. 

@mmsecase