Sale of interest in corporation

[Gail in Virginia]

I am preparing 1099's and w-2's for a corporation (not an S-corp.) One shareholder bought out the other shareholder's interest during the year. A publicly traded stock would report this on a 1099-B for the sale of the stock. This is not a publicly traded corporation. Is any reporting required by the corporation regarding the sale of the stock?

[OldJack]

Individual Seller of C-corp stock, not to C-corp, would simply report the sale on his 1040 Sch-D. Buyer has no report and C-corp has no report.

If the C-corp was NOT the buyer, there would be no reporting or accounting of the sale on the form 1120. If the C-corp was the buyer, there would be accounting for treasury stock and/or redemption of stock rules for consideration of deemed taxable dividends.

There could be a state reporting requirement depending upon your state.

[kcjenkins]

No, when individual owners sell their stock, the company does not report anything, because as far as the company is concerned, it's nothing to them. The seller will report his sale on his personal Sch D, the buyer will not have anything to report until and unless he sells the stock he bought. The corp merely records the new owner so that any dividends go the the owner of record. That is why when you buy stock, you send in the old certificate and the company issues you a new one in your name.