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Taxpayer with a Final S Corporation K-1, do I do anything with the remaining stock basis?

kcycpa
Level 2

My taxpayer has two S Corporation K-1s.  The S Corporations sold their assets and property and have filed final tax returns.  I do not prepare the S Corporations or know who did. 

My taxpayer has stock shares listed on both final K-1s and he has basis left in his stock based on stock basis analysis worksheets.  My thought is to pick up the basis left as a loss on his stock shares in each S Corporation and put it on the 1040 Schedule D but is that correct?  Or does he just lose the basis left in his stock?  I want to make sure I get this piece correct.

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1 Solution

Accepted Solutions
IRonMaN
Level 15

If you are comfortable that the basis schedule is correct, they you would have a loss to report.


Slava Ukraini!

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5 Comments 5
IRonMaN
Level 15

He didn't get any cash for the remaining basis?


Slava Ukraini!
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kcycpa
Level 2

He did receive cash on both but whoever prepared the S Corporation return and K-1s left basis on his schedules.

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IRonMaN
Level 15

If you are comfortable that the basis schedule is correct, they you would have a loss to report.


Slava Ukraini!
kcycpa
Level 2

Yes I am comfortable the basis schedules are correct.  Thank you for confirming what I was already thinking.  I needed to run it by someone else just to make sure.Thank you for our time and assistance.

IRonMaN
Level 15

You betcha!


Slava Ukraini!