K-1 to a non-shareholder?
I am the sole owner/shareholder of an S corporation in Illinois. I was wondering if it would be possible to issue a K-1 (report the income) to my son who is filing as an independent? My son is neither a shareholder nor an officer in my company. However, I plan on transferring the ownership of the corporation to him this year. That being said, can he report my company's last year (2013) income on his taxes, through a K-1, even though he holds no stock in the corporation? I realize that this may be an unusual question, but I would really appreciate if I could get some professional input on this matter. Please let me know if you need any further information or clarification.