corp sale 1120-s

[TAX4US]

HELP me understand where I may be wrong. 1120s(husband and wife). TP basis in stock before 2016 120k.#'s appear to check out. corp sold out in 2016 and dissolved. I have coming through the K-1, 325k tied to goodwill, 175k 1250 gain, 632959k 1231 gain for sale of hard assets. Also have 170k coming as ordinary income in box 1 of k-1. Corp had no outstanding debt. If these things show up on TP return in properholes tp owes a pile of money. My question is what do I do with the stock basis? Gross sales price was 1.2m. Should the basis be an offset to the sale? With this all happening does the basis go up more. My thinking (on paper) in order to be sure this thing is close. It would appear that TP basis would be 120k plus 170k then sold it for the 1.2m thus creating a gain of somewhere around 910k more or less. Thanks to anyone who has time to look at this. Personal return will go on extension but TP needs to send a rather large payment by Tuesday.

[kathyc2]

HELP me understand where I may be wrong. 1120s(husband and wife). TP basis in stock before 2016 120k.#'s appear to check out. corp sold out in 2016 and dissolved. I have coming through the K-1, 325k tied to goodwill, 175k 1250 gain, 632959k 1231 gain for sale of hard assets. Also have 170k coming as ordinary income in box 1 of k-1. Corp had no outstanding debt. If these things show up on TP return in properholes tp owes a pile of money. My question is what do I do with the stock basis? Gross sales price was 1.2m. Should the basis be an offset to the sale? With this all happening does the basis go up more. My thinking (on paper) in order to be sure this thing is close. It would appear that TP basis would be 120k plus 170k then sold it for the 1.2m thus creating a gain of somewhere around 910k more or less. Thanks to anyone who has time to look at this. Personal return will go on extension but TP needs to send a rather large payment by Tuesday.

I'm not sure I'm following your question. Why are you saying basis will only increase by ordinary income rather than all pass-through income?

[TAX4US]

The question becomes by adding all the taxable incomes to the basis of the stock makes the basis almost equal to the sales price. So if I think through, Tp pays the tax on all the gains then gets all the cash from the sale he would not have a gain or loss on the stock. Does this seem reasonable?

[kathyc2]

The question becomes by adding all the taxable incomes to the basis of the stock makes the basis almost equal to the sales price. So if I think through, Tp pays the tax on all the gains then gets all the cash from the sale he would not have a gain or loss on the stock. Does this seem reasonable?

Are you preparing the 1120S or just the 1040 that has a K1?