Discussion:Retirement of S-Corp Officer - filing the 1120-S

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Discussion Forum Index --> Tax Questions --> Retirement of S-Corp Officer - filing the 1120-S

Bjlral2000 (talk|edits) said:

11 January 2007
We have a client (S-Corp) who's president retired (via a stock sale to the V-president) at September 30, 2006. Only these two shareholders are involved.

We will be using Corporate accounting/book information to prepare the 1120-S and K-1's at September 30, 2006 for the exiting shareholder and then for the remaining shareholder at December 31, 2006.

My question is, do we file one return and prorate the income to reflect the above or do we file two short year returns.

Grateful for any information and direction...

Barbara in Hawaii

Jdugancpa (talk|edits) said:

11 January 2007

Discussion:100% Purchase of S Corporation Stock

Taxref (talk|edits) said:

11 January 2007
Only 1 return is needed. However, each shareholder should receive a K1 as of 12-31-06 only. Allocate the K1 items on a per share/per day basis.

Blrgcpa (talk|edits) said:

11 January 2007
I assume the name is the same. If there is a new ein, then do 2 part years. Otherwise, only one return is needed with 2 K-1s.

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