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S corporation sold all assets and liquidated at end of calendar year and made a "liquidating" cash distribution to shareholders. The liquidating distribution is reported on Form 1099 DIV in box 9.
At the end of the year total assets and total liabilities are zero. However, my retained earnings account won't zero out on Sch M-2 as I don't know where to insert the "liquidating" cash distribution so that it will flow through Sch M-2 and zero out the retained earnings.
Where do I report the liquidating cash dividend on the final Form 1120S? If I report on Schedule K line 16d, then that doubles up the amount reported on the Form 1099Div.
Pro Series not allowing me to enter on Sch M-2 without override and then necessary to override multiple lines to get the correct ending balance of retained earnings and equity, which should be zero.
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I have never seen an S-Corp report dividend to share holder on 1099-DIV. All distributions get reported on K-1 form. I thought the only distinction was whether it was cash or property.
I believe you need a corrected 1099-DIV showing zero. All reporting to shareholders 'flows through' the K-1 form.
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Page 40 of the 1120-S Instructions:
Line 17c. Dividend Distributions Paid From Accumulated Earnings and Profits (Schedule K Only)
Enter total dividends paid to shareholders from accumulated earnings and profits. Report these dividends to shareholders on Form 1099-DIV. Don't report them on Schedule K-1.
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I don't remember but doesn't that only happen when it was an existing c corp converted to an s corp?
my first thought was also that there should not be a DIV form and that it was on the k-1 as a cash distribution
