Liquidating an S Corp

[gwithers13]

We are closed our S Corp end 06. There was a cash distribution of 66,000 to 2 owners equally with 50% of stock each. Resolution was passed to close, Form 966 was filed. Dept of State has been advised, funds were distributed. I now think the only thing left to do is file the tax form.
I have done the 1120s but do not know where or how to put the distribution?
Where is it reported on the 1120s?
Does it go on the K-1 for each stockholder and if so where?
Is it reported as a capital gain (the difference between the 33,000$ and the initial investment of each shareholder)?
Or is it a dividend?
Any help would be appreciated.

[Uncle Sam]

Liquidating an S Corp

The final distribution to the shareholder gets reported on 1099-DIV as a liquidating distribution. If paid in cash, it's reported in the Cash box, if property, in the in-kind (property) box.
That then gets reported on the shareholder's Schedule D as gross proceeds where you then show the cost basis.
As far as the final corporation tax return, it's normal practice to not fill in the ending balance sheet on P. 4 of 1120S.

[gwithers13]

Thanks for the time on this

I appreciate the guidance. I could not find any instructions on the IRS website in the publications. Thanks again,

[winnie]

tax book

Look on the tax book page 25-3 on sale of business. Realize you did not sell, but the give an example that should be helpful. Does not address the 1099 issue.