how to report the (sold) business transfer action in tax return?

My wife sold her small business last year, and the 1120S (with schedule K) was done by professional, now, it is time to file for tax return (personal).

We use TurboTax to prepare our tax return, one question is, when I choose the business was terminated and sold, it ask me to "fill the information, purchase date and sale date reported on your K-1 from YYY Inc.", but I checked the schedule K, it didn't has those transaction information, is this means, the accountant I hired made mistake, or I should fill those information without worry about the match (to schedule K).

I do have the income from this business after sold the business, I just don't really know how to report it in tax return, and whether I have to fill in the transaction in schedule K, if so, how.

Thanks for your advice.

4 Answers

Relevance
  • 7 years ago
    Favorite Answer

    Did you sell the shares in the S Corp., or did the S Corp sell its assets?

    How do you have income from the business after it was sold?

    If you sold the shares in the S Corp (it sounds as though you didn't), you'd just report the sale of the stock.

    If the S Corp sold its assets, then that should be reported in the 1120S and your K-1

  • tro
    Lv 7
    7 years ago

    the K(1) doesn't provide the purchase date, that would be something your wife and her accountant would determine from the original papers when she organized the company

    if this was a corporation she should have the date she registered with her state which will probably also mean she has to file papers to dissolve it with the state(or the annual minimum tax will go on)

  • 7 years ago

    Sales price is amount she received from sale. Cost basis for her stock is available from the business accountant - her original investment was original cost but that changed every year with various adjustments. Sales price minus your cost basis is long term capital gain on Schedule D.

  • Fred
    Lv 5
    7 years ago

    "is this means, the accountant I hired made mistake"

    Yes.

    And check the 1120S to see if it has "Final Return" checked.

Still have questions? Get your answers by asking now.