A lady called and asked what my fee would be for a SIMPLE return which had two k-1 forms ONE of which she sold. I referred her to a local CPA. I began to research this issue and found that the sale would PROBABLY be a capital gain or loss reported on schedule D I BELIEVE but there were two code sections of exceptions. The BASIS in the partnership would be needed and this can often be difficult to determine. I have never encountered this issue but thought it was interesting.
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I have picked up P'Ships and S-Corps and I never...
I have picked up existing P'Ships and S-Corps and not one of the partners or shareholders have a clue what their basis is. This year I am helping two S-Corps launch and I must tell you I probably would have not gave tracking cost basis much thought until this was covered thoroughly in the EA class I attended. This is why we needed competency testing.
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