Question

Do I owe my former business partner a tax document for payments I made to him last year for a Stock Redemption Agreement?

Forum|Forum|2 years ago
February 22, 2024
1 reply
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Tax Documents for Stock Redemption Agreement payments

TurboTax Online

If you paid your former business partner for stock then you are not the entity that should issue a 1099-B. Actually, an individual is not required to issue a 1099-B.

A broker or barter exchange must file Form 1099-B for each person where a sale was initiated in their brokerage.
About Form 1099-B, Proceeds from Broker and Barter

Please update here if you have additional information or questions and we can help.

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K

knoc90236Author

Actually, my C-Corp paid him. Does my C-Corp owe him a 1099 or any other tax documents?

DaveF1006

Does anybody have a response to that last message? Here it is again:

Ok, let me explain my situation. He and I started a company 2 years ago as a real estate brokerage, C-Corp. We decided that the company wasn't working out for him. So, in order for him to leave, he wanted me to reimburse him all of his costs in the business, including his legal cost, plus what he estimated would be his tax costs of those payments. Now he wants some sort of a tax document for those payments. By the way, which I had to take out a loan to pay him. He has been paid in full. So do I owe him any tax documents and if so what documents?

You could issue him a 1099 MISC for him to report all of his reimbursements, legal costs, and tax costs. Here is more information about how to file a 1099 MISC including complete instructions for filing.

About Form 1099-MISC

Instructions for 1099 MISC and 1099 NEC

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