topic K1/S-Corp in Get your taxes done using TurboTax

K1/S-Corp

eckhoops — Sun, 01 Apr 2018 21:37:59 GMT

I was part of an S corp that ended in 2017. I have my K1 Form. While using Turbo Tax to do my taxes, I'm asked to choose how I disposed of this S Corp. I did not manage the day to day oversight. I just had a shareholder's percentage of stock ownership. The S-corp was just ended. Everyone was paid out their final percentage. I'm not sure how to accurately answer this question. I'm guessing the option "I sold it outright (complete disposition). However, I'm not sure if this is correct. Any help?

Re: K1/S-Corp

PaulaM — Sun, 01 Apr 2018 22:15:34 GMT

You can choose 'None of the above'. Then continue to enter the K-1 box numbered information.

Re: K1/S-Corp

LudwigVan_fan — Tue, 03 Apr 2018 00:16:09 GMT

But you also may have potential gain/loss on the sale of your stock.

The current year income/loss and separately stated items adjust your basis (as well as any prior year items did; it's best to compute basis at the end of every year taking into account that years income/loss, separately stated items, and distributions/contributions) .

You have to compare the amount of distributions you received in exchange (or surrendering ) for your stock. If the total distributions exceeded your adjusted basis in stock, then you have a gain; if less, than a loss (capital gain/loss and depending on your holding period long or short term).

Here is a link for information regarding S Corporations and it includes other links as well.

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations