Liquidation of S-Corp and Partnerships

[Wolf Financial]

In a complete liquidation of a S-Corp, what are the reporting requirements (final balance sheet) and how do you figure the calculation of distribution to shareholders? Same question for Partnerships. Thank you!

[TAXNJ]

In a complete liquidation of a S-Corp, what are the reporting requirements (final balance sheet) and how do you figure the calculation of distribution to shareholders? Same question for Partnerships. Thank you!

Have you referenced TheTaxBook sections 19 & 20 as a starting point?

[Wolf Financial]

Yes, we did reference the tax book.

[TXEA]

I suggest some CPE in this area. Liquidating an S-Corp is quite involved, and requires a plan of liquidation be filed with the IRS (Form 966) within 30 days of adoption, valuation of any assets distributed to the shareholder, possible filing of Form 1099-DIV for liquidating distributions, short-year tax return (don't miss the deadline).

You need to be careful about shareholder distributions near the time of liquidation, consider shareholder loans if forgiven, treatment of A/R if cash basis S-corp, must deal with assets distributed to a shareholder subject to a liability, and state tax filing requirements.

In other words, you asked a very tough question without know anything about the corporation.