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Tax Law (Questions About Taxes)/1040 reporting - sale of S-Corp stock

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Question
I have been filing the tax return for a family business, a S-Corp. I am selling my stock for a token amount (probably $1). S-Corp has had negative AAA but due to basis from shareholder loan, I have been able to take the losses. I still have positive basis thus the sale will result in a capital loss. How do I report this on my 1040?

How does the S-Corp report this sale of my share/interest? Should there be a change in my portion of the shareholder loan amount or AAA?

Answer
Schedule d. Sale of stock.

Are you waiving loan repayment too? Forgiving that amount of the loan which is yours?

Corp reports in equity section.

You need a professional planning and executing this stuff.  These questions are pretty simple and I am higgly concerned yiu have not done not only this year's retuens, but likely prior return too incorectly.

Ripe with ooportunities to screw up.

Where are you located?

Tax Law (Questions About Taxes)

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

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19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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