I am not sure what you asked previously and what answers you received.
That was not a part of our discussion.
If you pay to the employee for services or for retirement
- that is compensation and taxable income
for the payee.
Guaranteed payments are used by partnerships - not by corporations.
In case you have a corporation - the compensation mainly is treated as wages - not guaranteed payments.
If that payment $106,000 - is NOT for shares - but partially for shares and partially a compensation - you need to separate that amount - and treat each part differently.
Compensation for services is reported on W2 and purchase price for shares is NOT reported on neither W2 nor K1.
K1 ONLY reports shareholder's share of corporation's income and deduction
All other information including the transaction for repurchase shares is reported on attached statement - and not directly on K1.
When you previously reported that shares are worth $100 - that is not the fair market value - but capital contribution
- which is treated as purchase price or the basis for the shareholder.
When the shareholder will report the disposition of shares on his/her tax return - the gain will be calculated as (selling price) MINIS (basis)
To determine the actual value of shares - we need to appraise the corporation itself - and that would be the fair market value - then divide that value by the total number of outstanding shares - and you will have the fair market value of each share.
If your repurchase price is different from that FMV - you would need to have an adequate explanation.
In the ideal situation - that FMV would be equal to your purchase price $106,000.
If the FMV of shares is much less - then we need to be clear - only a part of that amount is to repurchase shares and another part is paid for other reasons.
I hope that helps.