S-Corp dissolution non-deductible expenses

[Gretel]

I am somewhat stumped. Final cash distribution to only shareholder of $1,700 brings basis down to $200. There is also a non deductible loss from the asset sale (1231 loss) of $300 with no way to carry $100 to next year. I need some help with the reporting on the 1040 besides the regular income items.

Schedule D will show a sale of his stock for $1,700 with a basis of $1,600?

1231 loss of $300 flows to 1040?

Thanks.

[Gretel]

Deemed sale of assets

I need to revise my question. Does the S-Corp. report a deemed asset sale or are the assets distributed to the S/H and the difference between the total distributions (cash plus FMV of assets minus basis in assets - no liabilities involved) and his basis is reported on the 1040?

[Gretel]

Sorry, I am kind of talking to myself and believe I found my answers, please correct me if I am wrong.

1. The deemed sale of the assets is recorded on the corporation books.

2. This will effect the basis, in my case increase the basis, the 1231 loss will reduce the basis by the full amount.

3. The total distribution will be reported on the K-1 and used on form D of 1040 as sales price for the stock. Basis see no. 2.