Stock owned as tenants by entirety after spouse dies

Forum|Forum|1 year ago
February 4, 2025
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I'm completing or trying to complete the worksheet for shares in our S Corp's stock. We owned stock as Joint tenants by entirety during which time we both owned 100 % of stock. Our CPA for years reported it as 50/50 ownership which wasn't legally accurate and later changed the way he did it after he learned he had treated it wrong. But my spouse passed in Nov. and now they are doubling the amount of shares on the worksheet if I put we both owned all the shares. Am I supposed to split it in the tax return?

TurboTax Business Windows

MAK70

Since your spouse passed in November, she should have a final K-1 with zero shares and you have 100%.

RaekaAuthor

This is on K-1 from our S corp. We owned 5K shares as JTWRS. That means under the law each of us own 100% of those shares. I owned 5K and my husband also owned 5K rather than it being 2500 per person. Now that he has passed, when I tried to enter it I had an error. I don't remember now what I did wrong. But the way it is now, is it shows we each started the year with 2500 shares. He ended with 0 shares and I ended with the total 5,000 shares. It would seem it should have been both of use starting with 5K and him ending with 0 and me ending with 5K.

But maybe TT doesn't know how to do that or under tax law, you have to divide it that way.

I looked at the old K-1 and they never showed the beginning and ending shares.