Discussion:S-Corp-Final year expenses, procedure questions
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Revision as of 17:22, 2 November 2009
Discussion Forum Index --> Basic Tax Questions --> S-Corp-Final year expenses, procedure questions
Discussion Forum Index --> Tax Questions --> S-Corp-Final year expenses, procedure questions
Michaelstar (talk|edits) said: | 2 November 2009 |
| Situation is that a client who is an S-Corp is in their final year. In two years of operations the business failed. 100% owner, just shut down business, closed the checking account in June in a rush before all items were paid or things finalized.
The S-Corp has some final expenses to pay including the preparation of final returns. Final expenses may be in a range of around $7,500 after all is said and done. My belief is the corporate checking account should not have been closed until things are finalized by 12/31. The s/h will be paying for all final expenses personally. I believe he should contribute the money to the corporation and pay expenses with corporate checks and report all final expenses actually paid in the final year - even if that means he needs to open up a new checking account to do this. From a procedural point of view on this - what are your opinions? | |
