Sale of S corp

Forum|Forum|3 years ago
March 27, 2023
1 reply
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I was part owner of S-corp that ended by means of an asset sale. The K-1 includes the LT cap gains and Sec 1231 gains (which I assume include depreciation recapture) as well as ordinary business income. TurboTax asks my basis in my shares as well as acquisition and sale dates. Is the requested basis the basis before the applicable items on the current K-1 are added or subtracted (as appropriate) to the basis or the basis after applying the K-1 items from this year?

TurboTax Home & Biz Windows

AliciaP1

Basis for the purpose of the sale, would be your basis amount from the beginning of the year. If the S-Corp had any normal business income or loss to report, TurboTax will take that into account when calculating the gain or loss on your investment. So, enter your beginning of year basis then all the items from your Schedule K-1 and any supporting documents you received.

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