Please Help-c corp sold trying to wrap up

[tax info man]

Client sold his business that was a c corp in an asset sale. After the gain on the sale of the assets he had a net income of 100k To start the year he had a negative 30k retained earnings. Now he has retained earnings of roughly 70k on his balance sheet. There is no assets/money left after he paid his debt and taxes and he has treasury stock on the balance sheet for 88k and common stock for 1k. Filing a final return and was wondering what to do with these two items.

He thought he should get a loss on his stock

[erchess]

Critical Distinction

When someone "sells their corp" there are two things they can do and before we can help you we have to know which your client did.

They can sell the Corporation and when they do that it and its tax returns and other affairs are no longer their problem. This is a Sch D Transaction in which case they have a certain basis in the whole shootin match and given the sale price they have a capital gain or a capital loss.

The corporation can dispose of its assets either by selling them or distributing them to the owner and the owner can keep them, donate them, or sell them. If the corp gets rid of all its assets and stops operating then it should be closed out,

Obviously there are endless variations where the corp sells off some assets and is then itself sold. Anyway I'm sorry if you were clear and I just didn't "get it" but OP did not make clear to me what happened.

[tax info man]

yeah sorry about that, client sold his assets and has nothing left in the corp except those three things on the schedule L-the unappropriated retained earnings of 70 k, treasury stock and common stock.

If the final return is sent in with an amount in the unappropriated retained earnings, that is not something that has to be distributed and then taxed on the personal is it? Thank you so much for the help.

[tax info man]

I have balance sheet balanced with an amount left on the retained earnings on the balance sheet, just wanted to make sure nothing had to be done and if I filed a final return with that number it wouldn't flag anything.