Final S Corp tax return

[KJ Judd]

I'm working on a final S corp tax return. Do you report on Schedule L & M-2 the amounts right before the dissolution? I was going to report the final cash balance, fixed assets, etc. on Schedule L and on M-2 only show the distributions during the year (not the final distribution of all assets.)

Then remaining shareholder basis is compared to cash received to determine capital gain or loss on the individual reutrn.

It's been awhile since I did one of these. THanks!

[JON]

If final

and no further returns. Balance sheets should be 0s.

[ChEAr$]

Final solution

Just did one yesterday, and since gross receipts were SO low, no schedules l, m1 or m2
required.

"Never complain; never explain."

[BOB W]

I've been ......

...... told that all assets/liabilities should be shown on the final B/S so IRS know what got distributed to the Shareholders.

[Uncle Sam]

Final S Corp tax return

The final distribution to the shareholders gets reported on 1099-DIV in the box called
Liquidating Distributions - has nothing to do with P. 4 balance sheet reporting or M-1, or M-2.
Final return - I usually leave "end of year" balance sheet balances blank.

[OldJack]

The final distribution to the shareholders gets reported on 1099-DIV in the box called
Liquidating Distributions - has nothing to do with P. 4 balance sheet reporting or M-1, or M-2.
Final return - I usually leave "end of year" balance sheet balances blank.

The last time I looked at the form 1120S, page 4, Sch-M2, line 7 read "Distributions other than dividend distributions" and line 8 "Balance at end of tax year" which should be zero if all assets and liabilities have been distributed. If balance at end of tax year is to be zero wouldn't you think line 7 would have to show the distribution? Hint: Line 7 would normally agree with the 1099DIV.

As to the balance sheet being blank or zero... should be unless there are liabilities owed by the corporation that are not being paid by the corporation and as such the final balance sheet should shown the debt.