S Corporation shareholder buyout

Forum|Forum|1 year ago
January 25, 2025
3 replies
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Two person S Corp. One shareholder buys out the other on 8/1/24. They are making the election to closeout the books as of 8/1/24. There was a $ 40,000 loss at that point of time and by the end of the year there was a $ 15,000 profit. The $ 40k loss was know and built into the buyout price.

One K-1 will have a loss and the other will have a profit.

Any tips on how to make proseries "flow" this entry?

Thanks

ProSeries Professional

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IRonMaN

Level 15

Normally you allocate based on days owned. But you can elect to report the actual earnings for the period but using the special allocation (or whatever they call it) on the ProSeries K-1 worksheets.

Slava Ukraini!

dkh

Level 15

Unless ProSeries has improved this option (hahahahaha) since I did a 2018 return that elected to treat tax year as two separate years.....you'll have to do overrides on the K1s to force the numbers

ProSeries does have the Sec1377 election