I just received new "Final" Schedule K-1 for husband's S Corp for 2014 tax year. Do I need to amend 2014 return? Numbers match w/prior version except 'final' box checked.

Forum|Forum|7 years ago
June 1, 2019
2 replies
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What is the impact of the 'final' box (e.g., carryovers, etc.)? And is there any impact to my 2015 return, which is near completion - I was about to final that until I received this new form from 2014.

TurboTax Deluxe Windows

Best answer by PatriciaV

You have two options:

1) Amend your 2014 return to report the final K-1, write off any remaining investment in the S-Corp, and report a gain or loss on the dissolution.

See: "How do I Amend (Change or Correct) a 2014 Return in TurboTax?"

2) Report the final K-1 on your 2015 tax return, with zero income, and write off the investment at a gain or loss in the current year. When you indicate a final K-1, TurboTax will ask you about the sale/disposition of your investment in order to report any gain or loss. You will need to know your basis in the investment in order to complete this section of the interview.

Schedule K-1 is entered under Business Income. To find this section easily, follow the instructions below:

https://ttlc.intuit.com/replies/3301717

PatriciaVAnswer

Employee

You have two options:

1) Amend your 2014 return to report the final K-1, write off any remaining investment in the S-Corp, and report a gain or loss on the dissolution.

See: "How do I Amend (Change or Correct) a 2014 Return in TurboTax?"

2) Report the final K-1 on your 2015 tax return, with zero income, and write off the investment at a gain or loss in the current year. When you indicate a final K-1, TurboTax will ask you about the sale/disposition of your investment in order to report any gain or loss. You will need to know your basis in the investment in order to complete this section of the interview.

Schedule K-1 is entered under Business Income. To find this section easily, follow the instructions below:

https://ttlc.intuit.com/replies/3301717

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Carl11_2

Employee

You don't need to amend for that provided the only difference between the K-1 filed on the one you just got is that the "final" box is checked. When the final box is checked, that indicates one or more of several things.

- The recipient of the K-1 is no longer an owner/shareholder in the Corporation

- The S-Corp was closed, sold or otherwise dissolved.

Do keep that K-1 though in case