If I have suspended losses (due to basis limitations) and sell my shares of stock in an S corp. in which I am a minority owner, can I use the gain upon my sale to capture these suspended losses? I thought I had a gain for the total sale price of the stock and that the losses vanished into thin air but, when I input this into my tax software and link it to a specific K-1 it automatically adds it to the basis statement. The only way I see that it won't take the suspended losses is to also show the same sale price as a distribution to the shareholder so I am not 100% sure which way is correct. Anyone know how this is reported on a 1040?
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