Solved: Stock sale reported on Shareholder basis worksheet - Should there be a 1099-B and if not, how do I or do I have to report the stock sale? The SH still has ending basis.

Donna1 · ‎12-07-2019

My client has a K-1 S-Corp. The shareholder basis worksheet has in the other decreases section "Sale of 33 Shares 3/2/2018". Should I also have a 1099-B? If not, do I need to report the sale of the 33 shares (I am assuming so). I also assume, I need to contact my client and ask how many shares he originally purchased, the date and the purchase price.

sjrcpa · ‎12-07-2019

You always report income, whether or not it is reported on 1099s.

I'm guessing the S Corporation is not in the business of selling its own stock, so it has no requirement to issue a 1099-B.

Basis in S Corp stock only begins with the purchase of the stock. You need to add all items of income and gain, subtract all items of loss, separately stated deductions, and distributions for all years to get the basis at the time of sale.

Additional complications ensue if there were prior sales or if the shareholder loaned the S Corp money.

Ex-AllStar

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sjrcpa · ‎12-07-2019

You always report income, whether or not it is reported on 1099s.

I'm guessing the S Corporation is not in the business of selling its own stock, so it has no requirement to issue a 1099-B.

Basis in S Corp stock only begins with the purchase of the stock. You need to add all items of income and gain, subtract all items of loss, separately stated deductions, and distributions for all years to get the basis at the time of sale.

Additional complications ensue if there were prior sales or if the shareholder loaned the S Corp money.

Ex-AllStar

PhoebeRoberts · ‎12-07-2019

Sounds to me like what's needed from the client is the proceeds. The S-corp provided a basis schedule with the amount of basis used for the shares sold. Not that the S-corp is necessarily right, but it's a starting place.

Stock sale reported on Shareholder basis worksheet - Should there be a 1099-B and if not, how do I or do I have to report the stock sale? The SH still has ending basis.

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