jgcpa
Level 4
01-15-2020
09:03 PM
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How do I enter Liquidating distributions for a closing S corp? I do not want them to go to K-1 or K. I recorded them on 1099-Div. How do I reduce retained earnings for liquidating distributions?
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IRonMaN
Level 15
01-15-2020
10:26 PM
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Since distributions are a return of equity, I don’t believe there is such a thing as a liquidating dividend for an S Corp.
Slava Ukraini!
Slava Ukraini!
qbteachmt
Level 15
01-15-2020
11:39 PM
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An S corp doesn't issue a 1099-Div to anyone.
"How do I reduce retained earnings for liquidating distributions?"
By showing what was distributed, such as Funds (asset), stuff (asset), and perhaps debt assumption, to whom and how.
"I do not want them to go to K-1 or K."
Hmmm...are you sure about that statement?
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Ephesians3-14
Level 8
01-16-2020
08:19 AM
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I simply enter "Corporate Dissolution" on the M-2 on either the Additions or Reductions line and that zeroes out R/E so that there is no ending balance. Then I also enter 0 on page 1 for Assets.
