Client inherited ranch which was an 1120s corporation. Client was a co-owner. The ranch was sold and client was issued K-1 showing 1.4 million sale (his share) resulting in tax due of 258000. His brother, an equal inheritor, reported the gain of 1.4M on form 8949 as a long term gain. The basis shown on 8949 was1.3M resulting in a much lower tax due. So here's my question; Can K-1 information be used to create a form 8949, thus superseding the K-1 info? Thanks in advance for your input
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I think you mean that the client inherited shares of a S-corporation, which held a ranch.
If the S-corporation sold the ranch, the K-1 should have the correct information about that sale and there is nothing to change that.
But if the client sold his shares of the S-corporation, then the disposition of his shares are reported on 8949. A "final" K-1 would also result in the disposition of shares on the 8949.
So you may need to find out more about EXACTLY what took place.
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