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How do I properly dispose of K-1 on an individual return?

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Level 1

Client owned 20% share in an s-corp that sold in 2015. Their share of the sale was reported on their 2016 schedule K-1, Their 2017 K-1 showed some losses, and they received no schedule K-1 in 2018. Neither of the last K-1's received were "final".  If I choose complete disposition, I wouldn't want to show the same proceeds amount that was provided on the 2016 K-1. This would result in additional taxes owed. That being said, how would we properly dispose of the K-1 on the taxpayers individual return?  

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Level 15

Amend 2015 to properly dispose of the asset and any suspended losses or income from negative basis. Before doing that decide whether it is 2015 or 2016 that the S-Corp went away. 


ex-AllStar

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Level 15

Amend 2015 to properly dispose of the asset and any suspended losses or income from negative basis. Before doing that decide whether it is 2015 or 2016 that the S-Corp went away. 


ex-AllStar

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Highlighted
Level 15
or 2017. @vahaudio If client sold their interest in 2015, they should not have received K-1s for 2016 or 2017

ex-AllStar
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Level 15
Maybe it was a private sale and the preparer of the 1120S never knew the 20% owner left. One of the many reasons I have to do S-Corps. The think being a corporation is cool, but they have no idea of what they got themselves into.

ex-AllStar
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