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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29918
Experience:  Taxes, Immigration, Labor Relations
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I own stock, paid taxes on a gain, but never received the money.

Customer Question

I own stock, paid taxes on a gain, but never received the money. It was put on my tax as an earning. Can I go after the company
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Please indicate HOW you determined your gain and whether shares were sold?
Customer: replied 1 year ago.
It was on my K1 tax form. Came up as a gain which i paid taxes on. Shares are not sold
Customer: replied 1 year ago.
Showed up as income
Customer: replied 1 year ago.
I still own the shares
Customer: replied 1 year ago.
Where is my answer? Do not charge my card, I am not satisfy
Customer: replied 1 year ago.
I have not received an answer
Expert:  Lev replied 1 year ago.
I am still not clear if you purchased shares - and still own shares - I assuming of S-corporation as you mentioned K1 - so far - you are responsible to include your share of income into your tax return.Thus - you correctly paid taxes on that income.whether you received or not actual distributions - that is between shareholders.Shareholders decide how to use income.If there is no agreement between shareholders - that is a different issues - and that is a civil matter between shareholders.
Customer: replied 1 year ago.
Do not call me I hit the button by mistake
Customer: replied 1 year ago.
What difference does it make if I purchased the stock I stated that I owned the stock.
Customer: replied 1 year ago.
I am not satisfied, your company sure didn't hesitate to take the money out of my account
Expert:  Lev replied 1 year ago.
When you purchased shares of S-corporation - you likely saw documents of that corporation.You also should know the specific of how S-corporation are taxed.
Expert:  Lev replied 1 year ago.
S-corporations does NOT pay income taxes - instead all income realized by S-corporation is passed to shareholders on K1.So - - in your case S-corporation had income - and your prorate share of income was passed to you.Thus - I do not see any issues here.Whether your S-corporation will do actual distributions or will use the gain for any other purposes - that is between shareholders - and if someone promised you distribution but did not hold that promise - that is a civil matter between you and management.If for some reason you do not satisfied with that ownership - you may sell shares.If you think that you may expect distribution - you might want to communicate with teh company - it is possible that they plan distribution at some time...I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.