Sale of corporate stock (1120S)

[ILLMAS]

First time encountering this scenario, 4 shareholder business sold their corporate stock between each other, each member contributes $2,000 back in 2005, in 2019, husband and wife bought 24.5% x 2 of shares, making the other shareholder only .5% owners.  The shares were sold at cost, how do I report this sale on the 1120S/k-1`s?  

I am aware  the shareholder that sold their share will report on sch D.

Thanks

[Randall]

Wouldn't this be between the shareholders personally?  No book entry on the corp books?  Just an adjustment to outside basis for each shareholder?  Shareholder interest for K-1s calculated proportionately depending on date of sale?

 

[ILLMAS]

Yes you are correct, the sale was between the shareholders, the $8000 in capital stock didn’t change on the books.