ILLMAS Posted June 30, 2020 Report Share Posted June 30, 2020 First time encountering this scenario, 4 shareholder business sold their corporate stock between each other, each member contributes $2,000 back in 2005, in 2019, husband and wife bought 24.5% x 2 of shares, making the other shareholder only .5% owners. The shares were sold at cost, how do I report this sale on the 1120S/k-1`s? I am aware the shareholder that sold their share will report on sch D. Thanks Quote Link to comment Share on other sites More sharing options...
Randall Posted June 30, 2020 Report Share Posted June 30, 2020 Wouldn't this be between the shareholders personally? No book entry on the corp books? Just an adjustment to outside basis for each shareholder? Shareholder interest for K-1s calculated proportionately depending on date of sale? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted June 30, 2020 Author Report Share Posted June 30, 2020 Yes you are correct, the sale was between the shareholders, the $8000 in capital stock didn’t change on the books. Quote Link to comment Share on other sites More sharing options...
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