Question

About selling shares of a business

Forum|Forum|5 years ago
January 31, 2021
2 replies
0 views

Hi,

I am wondering if you can help me understand something. I was a co-owner of a business and Jan 2020 I sold my portion to other co owners. I was told that it would all wash as it was pretty much the same as when I purchased. Now I am concerned that is false information and I want to make sure I do my taxes correct. I did not get schedule K or S for them so I don't know if I should be getting anything from them or not.

Thank you

[removed]

Rick19744

Employee

There are a lot of missing pieces of information:

How long were you an owner of the business?
Not clear on whether this is an S corp or something else; LLC taxed as a partnership, partnership, LLC which made an election to be an S corp
Have you maintained your tax basis in this investment?
When did the transaction occur; this will determine short period return issues
Was there depreciable property?
Did you receive a final distribution?
Did you make an initial investment in the business?
Who prepares the business tax return?

Unfortunately, the size of the business does not necessarily make the tax issues any less complicated.

You may want to consider meeting with a tax professional.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Critter-3

If you were a partner in a partnership or an owner in an S-corp for even one day in 2020 then you should get a K-1 from the company when they have completed their return which is due 3/15 unless they put it on extension ... so contact the person in charge of filing the partnership return.