Brooke V. asked
My wife's father passed away last year, and she inherited shares in his S-corp equally with her brother. She sold her shares to her brother for less than their valuation. We were recently informed that she would receive a 1099 and K-1 for the period the company was in trust, and she would have to pay taxes on the income generated during that time, even though she never received any cash. Am I right that my wife should not have to pay taxes on money she never received, and if so, what statutes apply?
October 25th, 2024
Patrick D. answered
Income from an S-corporation is taxed to the owners regardless of whether the income is distributed....
October 25th, 2024
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