closing a C corp

[sha]

I have never closed a corporation and need some help. New client (only shareholder) is closing a very small C Corp and will run the same business as a sole proprietor. Final return is a short year with a small loss before accounting for balance sheet items. Only things on Balance sheet are $912 in cash, fully depreciated furniture and equipment (around $5k), $1000 of stock and retained earnings of -$88.

I will greatly appreciate any help. Thank you!

[Armando Beaujolais]

I have never closed a corporation and need some help. New client (only shareholder) is closing a very small C Corp and will run the same business as a sole proprietor. Final return is a short year with a small loss before accounting for balance sheet items. Only things on Balance sheet are $912 in cash, fully depreciated furniture and equipment (around $5k), $1000 of stock and retained earnings of -$88.

I will greatly appreciate any help. Thank you!

Page 18-18 of TTB Deluxe Edition has information about corporate liquidations. The corporation distributes its assets to shareholders and recognizes gain or loss as if the assets had been sold at FMV. The amounts received by the shareholder are considered to be payment in exchange for stock.

[sha]

thanks, Armando

Thank you for the input, Armando. I had read that page, but wasn't exactly sure what to do about the stock and retained earnings. I think I have it figured out now.

I appreciate your help. Have a great week.
Sha