TampaBayCPA
Level 1

Hi All,

Need some guidance on the following situation. Client selling S Corporation with the following details:

1) Selling FF&E and building as an asset sale

2) Selling corporate shares as a stock sale

I currently used the depreciation screens to report the building and FF&E sale which will show up on the K-1.

My question is how to report the sale of the s corp shares. Is that performed on schedule D of the 1040 or on the 1120S? How do you factor in the shareholder basis for the sale? Do you simply report the sale of the shares on SCH D and use the stock basis and loan basis as your cost basis? Or is there a way to show the sale on the K-1 screen on the 1040? Mostly concerned that the client may lose benefit of their basis by reporting this incorrectly in Lacerte.

0 Cheers