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!
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Last edited by TAXNJ; 09-30-2016, 07:15 AM.Always cite your source for support to defend your opinion -
Yes, we did reference the tax book.Comment
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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.Comment
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