For documentation of revoked S elections, you'd typically find this in the corporation's tax files as Form 1120S would show the final year of S status, and there should be a Form 1120 filed for any C Corp years. However, if the records are incomplete, you can request a transcript from the IRS using Form 4506-T to get the filing history. Regarding built-in gains tracking - corporations are absolutely required to maintain this documentation per Reg. 1.1374-8, but you're right that many don't do it properly or at all. If the documentation is missing or incomplete, you'll need to reconstruct it using: - Asset records and depreciation schedules from the S election date - Appraisals if they were done at the time of election - Financial statements closest to the S election date - Any available fair market value data from that time period If you can't reasonably reconstruct the built-in gains amount, the IRS may take the position that all gains are subject to the built-in gains tax, which is obviously not favorable. This is another reason why having an experienced practitioner review is crucial - they may know alternative approaches or have dealt with similar incomplete records situations. For your original S Corp stock sale, make sure to document your research process even if you conclude Section 1374 doesn't apply. The IRS likes to see that you considered all applicable provisions, especially in complex transactions like this one.

For comprehensive guidance on S Corp stock sales with installment components, I'd recommend starting with these key IRS resources: **Primary Publications:** - Publication 537 (Installment Sales) - covers the mechanics of installment sale reporting - Publication 542 (Corporations) - has specific sections on S Corp distributions and sales - Instructions for Form 6252 - detailed guidance on installment sale reporting requirements **Critical Code Sections & Regulations:** - IRC Section 453 and related regulations for installment sales - IRC Section 1367 for S Corp basis adjustments - Reg. 1.1368-1 through 1.1368-3 for S Corp distributions and basis rules - Rev. Rul. 89-7 specifically addresses S Corp stock sales with installment features **Additional Resources:** - PLR 200927013 provides guidance on mid-year S Corp stock sales and basis calculations - TAM 200733023 covers similar issues with installment reporting One thing I haven't seen mentioned yet in this thread is the potential need for a Section 453(d) election if the selling shareholder wants to opt out of installment treatment for any portion of the sale. This might be relevant if they want to accelerate recognition of losses to offset other gains. Also, don't overlook the potential applicability of Section 1202 qualified small business stock exclusion - if this S Corp meets the requirements, the selling shareholder might be eligible for significant gain exclusion on the stock portion of the sale. The complexity of your transaction really highlights why thorough documentation and research is so critical in S Corp dispositions!

I went through this exact same frustrating experience last month! Here's what I learned after spending way too much time figuring it out: The AMT section in TurboTax is asking for your prior year information because it needs to calculate something called an "AMT credit carryforward." This can apply even if you didn't actually pay AMT last year - the software still needs those baseline numbers. Here's the quickest way to resolve this: 1. **If you used TurboTax last year**: Log into your old TurboTax account and download your previous return. Search for "Form 6251" in the PDF - this will show you exactly what numbers the current year's software is asking for. 2. **If you used different software**: Go to IRS.gov and request a tax transcript for last year. It's free and instant if you can verify your identity online. 3. **Quick fix if you're certain**: If your income was under $80k last year, you took the standard deduction, and had no complex investments or stock options, you can likely enter zeros safely. The software will calculate everything correctly for this year. The key thing to remember is that this isn't indicating you did anything wrong - it's just TurboTax being thorough about AMT calculations. Most people in this situation end up entering zeros anyway because they never actually paid AMT in the first place. Hope this helps you get unstuck!

I completely understand your frustration - this AMT screen has tripped up so many people! Based on what everyone's shared here, it sounds like you have a few solid options to move forward. Since you mentioned your income and that you never received a Form 6251, you're likely in the same boat as most people who get stuck here. The software is being overly cautious and asking for prior year AMT data even when it probably doesn't apply to your situation. Given that you need to file soon, I'd suggest trying the zero entry approach first - if your income last year was similar to what others have mentioned (under $80k) and you took standard deductions, entering zeros will likely work fine and let you proceed. You can always go back and correct it before final submission if you find your actual prior year return later. If you want to be absolutely certain, the IRS transcript route that several people mentioned is definitely the most reliable way to get the exact numbers, though it might take a bit longer if you have trouble with the identity verification. Don't let this one screen derail your whole filing process - you're closer than you think to getting this resolved!

I'm so glad I found this discussion! I'm currently facing this exact same situation - I served as executor for my late uncle's estate and received $8,900 in compensation. Like many others here, I was specifically chosen because I'm his nephew and he trusted me to handle things responsibly, not because I have any professional background in estate management (I'm actually a physical therapist). The conflicting advice from tax professionals has been really frustrating, but reading through everyone's experiences here has been incredibly clarifying. The distinction between family appointment versus professional selection that keeps coming up makes perfect sense - since I was clearly chosen based on our family relationship and personal trust rather than any estate management expertise, it seems like reporting as "Other Income" on Schedule 1 is the right approach. I have all the documentation others have mentioned - the will naming me as executor, court appointment documents, and detailed payment records from the estate. My physical therapy background obviously has nothing to do with estate management, which I think further supports that this was purely a family-based appointment. The potential self-employment tax savings of over $1,300 is definitely significant, and it's reassuring to see so many people in similar family situations who have successfully used the "Other Income" method. Thanks to everyone for sharing their experiences and research - this thread has been more valuable than multiple paid consultations with tax professionals!

I'm dealing with this same situation right now! I served as executor for my late grandmother's estate and received about $4,200 in compensation. Like so many others in this thread, I was chosen because I'm her granddaughter and she trusted me to handle everything properly, not because I have any professional expertise in estate management (I work as a veterinary technician). Reading through all these experiences has been incredibly helpful in understanding the key distinction between family appointment vs. professional selection. Since this was clearly based on our family relationship and definitely not something I do as a business, I'm planning to report it as "Other Income" on Schedule 1 rather than dealing with Schedule C and self-employment tax. I have the will showing I was named as executor, the court appointment paperwork, and payment records from the estate. My veterinary background obviously has nothing to do with estate management, which supports that this was purely a family trust decision. The potential self-employment tax savings of around $640 may not be as large as some others here, but it's still significant for me. It's really reassuring to see so many people in similar family situations who have successfully used this approach. Thanks to everyone for sharing your experiences - this thread has been way more informative than the contradictory advice I got from two different tax preparers!

I wish the tax code wasn't so unnecessarily complicated!! Why can't points just be points and deductions just be deductions? My freind got audited over this exact issue and the IRS agent didn't even understand it. He kept changing his answer!!!!

This is exactly the kind of situation where documentation is everything. I went through something similar last year with an $820k mortgage and $8,200 in points. The key thing I learned is to keep meticulous records of exactly how much of your loan went toward the home purchase vs. any improvements. Since you mentioned $50k went to renovations, that could actually work in your favor. The IRS treats home improvement debt differently - it's not subject to the same $750k cap as acquisition debt. So you'd potentially have $780k subject to the limit (not the full $830k), which would increase your deductible percentage. My advice: get your closing statement, contractor receipts, and any other documentation organized now. When your tax person gets back, they'll be able to properly allocate the points between acquisition debt and improvement debt. This could save you several hundred dollars in additional deductions. Don't just assume you're limited to the simple ratio calculation - the improvement portion changes everything.

Everyone's overthinking this. I just claim 9 dependents on my W4 which cuts my withholding way down, then I pay quarterly estimated payments that are just barely enough to hit the safe harbor. Been doing it for years with no issues.

I've been in a similar situation and here's what I learned the hard way: even if you're disciplined with money, the math usually doesn't work out in your favor. The underpayment penalty is calculated quarterly, so even if you pay everything by April 15th, you'll still owe penalties for each quarter you were short. The current penalty rate is around 8% annually, which breaks down to about 2% per quarter. Most high-yield savings accounts are only paying 4-5% annually right now. So let's say you underwithhold by $5,000 throughout the year. You might earn $200-250 in interest, but you could face $300-400 in penalties. The numbers just don't add up unless you can find investments yielding significantly more than the penalty rate. Your best bet is probably what others mentioned - calculate the minimum needed to hit safe harbor (usually 100% of last year's tax liability, or 110% if your AGI was over $150k) and then adjust your withholding to that exact amount. You'll still have some money to invest without triggering penalties.