Discussion:Dissolving S Corporation
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Discussion Forum Index --> Tax Questions --> Dissolving S Corporation
| 6 December 2006 | |
| How do I handle a negative retained earnings on an 1120S when the corporation has been dissolved? The schedule L as of 12/31/04 was cash 9665.00, fixed assets 5249.00, liabilities 57747.00, capital stock 500.00, additional paid in capital 77401.00, retained earnings -120,734.00. | |
| 6 December 2006 | |
| 1) Are you are dissolving the company as of 12/31/2005? (final return)
2) Are the liabilities secured by the stockholders? | |
| 7 December 2006 | |
| Pay all liabilities, sell fixed assets and whatever is left finally that is the shareholder's share. Since Scorp is a flow through entity you must have taken this loss on your tax return already. Form 966 needs to be filed within 30 days of a corp adopts a plan to dissolve. Sale of property will be shown on form 4797. Filing fees, accounting fees and attorney fees are deductible business expense in the year of liquidation. | |
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