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How do I report a sale of stock of the private corporation?

For a sale of shares of a listed corporation, the stockbroker reports the transaction to the IRS and the seller by 1099B reporting. When a shareholder sells his shares in a private corporation to another shareholder or an outside person, what the corporation should report to the IRS, the buyer, and the seller? 

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sjrcpa
Level 15

The coeporation reports nothing to the IRS, How would the corp know what Shareholder A sold his shares to Shareholder B for?

Seller is on the honor system to report the sal.e.

It is Buyer's responsibility to kep track of his basis in the stock.


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sjrcpa
Level 15

The coeporation reports nothing to the IRS, How would the corp know what Shareholder A sold his shares to Shareholder B for?

Seller is on the honor system to report the sal.e.

It is Buyer's responsibility to kep track of his basis in the stock.


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abctax55
Level 15

"...the stockbroker reports".  NOT the Corporation (think IBM, or AT&T).

This is because the stock is held in an investment account; stock in a private corp generally isn't. 

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abctax55
Level 15

Is this an "S" Corp?  If so, there are a few issues to deal with...  NMI.

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mjervis
Level 1

Greetings, I have a situation where I was granted shares in a private company and needed to buy in for those shares for which I have a cost basis.  This company was then sold to another private company and my shares vested and I received proceeds after about five years.  What form would I enter this transaction under.  There will be no 1099B type from coming from this transaction nor is it reflected in my wages.  I just received a check.  Thank you. 

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abctax55
Level 15

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

 

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