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haveawonderfulda
New Member

If one sells stock but does not deposit proceeds into a personal (bank) account but keeps in an investing act., does that still count as income in regard to filing taxes?

Proceeds stay as cash in an investment account. Ultimately, I'm seeing if I need to file a Schedule K-1 or not.
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RBBrittain
Level 8

If one sells stock but does not deposit proceeds into a personal (bank) account but keeps in an investing act., does that still count as income in regard to filing taxes?

It's still income because you sold stock, no matter what you did with the proceeds. As far as the IRS is concerned, the cash balance of an investment account is just like cash on hand or in a bank.

Is it actually a partnership (including limited partnerships and most LLCs) or S corporation interest? The only time a K-1 is needed is if a partnership or S corporation is involved. If it's regular corporate stock owned & sold by you personally, that's reported on a 1099-B and Schedule D, not a K-1.

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RBBrittain
Level 8

If one sells stock but does not deposit proceeds into a personal (bank) account but keeps in an investing act., does that still count as income in regard to filing taxes?

It's still income because you sold stock, no matter what you did with the proceeds. As far as the IRS is concerned, the cash balance of an investment account is just like cash on hand or in a bank.

Is it actually a partnership (including limited partnerships and most LLCs) or S corporation interest? The only time a K-1 is needed is if a partnership or S corporation is involved. If it's regular corporate stock owned & sold by you personally, that's reported on a 1099-B and Schedule D, not a K-1.

haveawonderfulda
New Member

If one sells stock but does not deposit proceeds into a personal (bank) account but keeps in an investing act., does that still count as income in regard to filing taxes?

Okay. Thanks. Should filing that be expected to be found free online somewhere?  Also. it's a limited partnership.
RBBrittain
Level 8

If one sells stock but does not deposit proceeds into a personal (bank) account but keeps in an investing act., does that still count as income in regard to filing taxes?

As in you owned & sold an LP interest? Or did your LP own & sell stock?
haveawonderfulda
New Member

If one sells stock but does not deposit proceeds into a personal (bank) account but keeps in an investing act., does that still count as income in regard to filing taxes?

I owned and sold.
RBBrittain
Level 8

If one sells stock but does not deposit proceeds into a personal (bank) account but keeps in an investing act., does that still count as income in regard to filing taxes?

The K-1 will come from the LP for any gains & losses of the LP until you sold it; you'll enter that on your return. Also, you may get a 1099-B from your brokerage for any trading gains or losses (I'm not sure of that as I don't regularly deal with publicly traded LP interests). Either form will require you to file a long-form 1040, thus you won't be able to use Federal Free Edition (Absolute Zero).
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