Sale Of S Corporation Stock

[tonia2021]

Where does the sale of s corp stock show up on the K-1? One individual is purchasing 100% of the stock from the prior two owners. Does this transaction show up on their K-1?

[veritas]

The sale of

corporate stock does not show up on the K-1.

The selling shareholder reports the sale on Sch D.

The shareholders purchasing the stock increase their basis.

Are you preparing the corporate return?

[tonia2021]

Just wondering if this is a property distribution on the K-1. Or, is the prior owner responsible for reporting the sale?

[veritas]

There is no

property distribution. The sale occurs outside the corporation. The selling shareholder reports the sale of stock on Sch D.