brian4
Level 2
12-07-2019
06:59 AM
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The Sub S is insolvent and the shareholder is also insolvent. We are removing the liability and adding the COD to Adjustments to Shareholder Equity, line 25, which brings the return into balance. Is this the correct way to treat the COD since it should be non taxable.
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sjrcpa
Level 15
12-07-2019
06:59 AM
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I'd do an M-1 for income reported on books not on tax return.
The more I know the more I don’t know.
brian4
Level 2
12-07-2019
06:59 AM
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Thank you!!
sjrcpa
Level 15
12-07-2019
06:59 AM
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You're welcome.
The more I know the more I don’t know.
The more I know the more I don’t know.
