How do I record the sale of S-Corp

[jaredrmuir]

My wife and I sold our S-Corp and received a K1 (Form 1120S) from an accountant.  I tried entering the information into Turbo Tax and selected that the S-Corp was sold entirely in 2024.  However I must be entering something wrong because my taxes on the long term gain are double what I anticipated.  I am simply inputting the #’s I have from my K1 and trying to answer the questions the best I can.  Something is off though.  It is also not abundantly clear how to enter everything since some of the questions in TurboTax don’t seem to line up neatly with the info on our K1.  Any insight?  Any additional info I can give to help guide me?

[DianeW777]

Yes, I would remove the sale portion from the K1 and enter the sale directly on your tax return. Keep other K1 items in that part of your tax return, if any. It can get somewhat confusing when the sale is entered through the K1.  Use the steps below to enter the sale portion. 

To enter your sale in TurboTax, follow these steps. 

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link.
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? 
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
   • Click this link for more information. Where do I enter Investment Sales?