We have owned 1120s shares for quite some time. Late 2022, the corporation purchased back our shares in the company. The corporation indicated that 2022 would be the last year we would receive a Schedule K-1.
How do we report the sale of stock back to the corporation and report any income, etc. from sale of stock shares?
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Your long-term capital gain/loss would be the sales price - what you were paid less your tax basis in the stock.
if this is a privately held company - no 1099-B issued - you would indicate total disposal of the stock
and use the sales section of the k-1 worksheet to report proceeds and cost (certain portions must be completed so the k-1 is dropped from the 2024 return and if you have suspended losses they are now allowed. This flows to form 8949/schedule D as a sale where neither sales price nor tax basis is reported to the iRS ( type F)
if you get a 1099-B the only difference is that in the sales section of the k-1 you enter 0 for cost and sales price
and instead report it in the investment section - sales of stocks ................ entering it here, would indicate that sales proceeds and perhaps cost (depending on the type - D both reported to IRS - E only proceeds reported. reporting on the k-1 when you get a 1099-B will likely result in an IRS notice because they were notified of the proceeds but the 8949/scheule B would indicate they weren't and thus a mismatch. cords say the
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