AboutNeil Johnson (The Tax Dude®) Expertise CPA to answer Federal income tax related questions for individuals, small business owners, estates and trusts. I also specialize in divorce related tax and financial planning matters.
I have extensive experience in nearly all areas of income taxation relating to businesses and individuals. I also regularly serve as a strategic consultant on a wide range of non-tax related business issues.
In addition, I provide aggressive, experienced and skilled representation against IRS challenges at the audit and appeals. I have successfully represented clients against the IRS on issues regarding reasonable compensation, valuation discounts, time value of money, travel and entertainment expenses, innocent spouse relief and personal liability for unpaid business taxes.
Experience Over 18 years in public accounting with an emphasis in taxes.
Education/Credentials B.A. (Accounting) Loyola University of Chicago
Over 300 hours of continuing professional education since June 2001.
Question How is the tax liability determined for a taxpayer who no longer owns an interest in a Sub S corp at the end of the year.
Thank you
Answer Bill,
You should be receiving a final K-1 from the S-Corporation reflecting any pass through income, losses and deductions during your period of ownership for the year. You will also need to report the disposition of the stock on Schedule D. Schedule D is used to report gains and losses from stock sales. It is important to know what your cost basis is in the stock. Basis calculations for S-corporation stock is different than basis held in regular corporations.
If you have any other questions, please feel free to e-mail me directly.
Regards,
Neil Johnson
The Tax Dude™
www.thetaxdude.com
taxdude@covad.net
