Two owner's started an S Corp over 5 years ago. One had more experience in the business so the other paid more in for the start up. Previous CPA recorded as Paid in Capital (no tax consequences).
The owner with more experience just bought out other owner in a stock sale. Does the owner with more experience now have a taxable event in relation to the Paid in Capital? Or is it just a matter of affecting his basis (basis is less than purchase price due to paid in capital).
Is a form 8954 required for a sale of stock of S corporation?
Thanks for any input!
The owner with more experience just bought out other owner in a stock sale. Does the owner with more experience now have a taxable event in relation to the Paid in Capital? Or is it just a matter of affecting his basis (basis is less than purchase price due to paid in capital).
Is a form 8954 required for a sale of stock of S corporation?
Thanks for any input!
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