TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

K-1 and Form 4797

Forum|Forum|3 years ago
June 17, 2022
1 reply
0 views

Last year we sold a farm that had been owned by an S-Corp. I have all the stock blocks needed to establish the stock basis when the books were closed on 12/31/2021.

I understand that Form 4797 will be used to report this transaction. Do I use the amount shown on Line 16 (code D) items affecting shareholder’s basis on the K-1 from the corporation as the sales price or some other amount (such as my share of the actual sale price of the farm)?

As always, thanks for any and all help.

Level 15

You might want to seek guidance from a tax professional for this scenario.

Regardless, it is somewhat unclear whether the S corporation, itself, sold the property or whether the property was distributed to you, at some point, and you sold the property (and then, thereafter apparently, the corporation was dissolved).

I will page @Rick19744 for further input as to the basis, valuation, et al.

Level 2

Thanks for getting back. The S-Corp sold the property, and I received a cash distribution.

Level 15

Then you will likely have figures on Lines 8c and 9 of your K-1 (possibly other lines) that relate to this transaction.

@Rick19744 will almost certainly have more input.