S-Corp Final K-1

[geekgirldany]

Shareholder given shares from "old shareholder" as of January 1, 2011. Stock certificates were signed over.

Double checking, I believe I need to do a final K-1 for the old shareholder showing 0 and mark final for 2011. Is that correct?

[Uncle Sam]

S-Corp Final K-1

How about a 1099-DIV for liquidating "old shareholder's" distribution amount?
Then shareholder has to report Form 8949 to report basis.

[geekgirldany]

If no money changed hands and the stock certificates were just signed over how is that handled?

[Burke]

I agree with the final K-1 for the liquidating shareholder. However, Uncle Sam may be correct as well, and the final K-1 would not be zero (I am assuming on Line 1?) if he had income in 2011. Not sure where you were indicating the zero would be.

[geekgirldany]

Well the stock certificate was signed over on January 1, 2011. I looked back and there was no income or expenses on that exact date. So to me there would be no income to the old shareholder. So 0 on line 1 for income. Unless I have to do that split year thing that the shareholders agree to... hoping since it was the first of the year would not have to do that.

[Burke]

Sorry, I misread. I was thinking 1/1/2012!