How to transfer shares to new shareholders

Forum|Forum|2 years ago
January 7, 2024
1 reply
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Longtime TurboTax Business user. 100% Founder Shareholder sells his 1,000 shares of stock to 2 new shareholders. The sales agreement shows Jan 1 as the date the new shareholders acquired the stock (50%-50%). What are the steps required in TurboTax Business to do this so that so that the business tax return from the prior tax year can be imported correctly and setup the 2 new shareholders in the current tax year? Thanks for any help.

TurboTax Business Windows

Anonymous_

Employee

Steps to do this when?

I'll page @Rick19744 (knowledgeable Champ in this area), but it appears as if you were the sole shareholder throughout the 2023 tax year.

ZonkerHarrisAuthor

Thanks for the reply. I was the 100% SH until Dec 31, 2022. The contract stated Jan 1, 2023 as the date the 2 new shareholders acquired the stock. Does the year really matter?

Anonymous_

Employee

No, sorry, I assumed it was 12/31/23 for the last year you were sole shareholder.

You need to add the other party as a shareholder as of 1/1/2023. Go through the Business Info section and make the adjustments on the 2023 return under Shareholder Information. You will need to indicate that there was a change in ownership.