I need to add a new member to an S-corp

lostdart

In the middle of 2024 a single member S-corp added a new member. Both now own 50% of the business.

I am having trouble figuring out how to add the new member to the S-corp. Error message keep coming up.

Jim-from-Ohio

What if you go to the K-1 worksheet for shareholder # 1 and hit the Page Down button on your keyboard?

lostdart

I can add the new member but the Weighted Average % computation does not seem to be working.

New shareholder came on board on 6/26/24. There are now two owners.

Weighted average is showing 50% each. That is not correct. I am missing something

lostdart

It looks like I can manually adjust the percentages myself for 2024. I will just do that.

I thought the software would change the % based on transfer date.

Accountant-Man

It should. Did you also enter the original SH's interest down to 50% on that same date on the Ownership Pct W/S.

It works for me. 100% from prior year, changed ownership 6/30/24. Now 74.86339% and 25.13661%.

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