elintx
		
		
		
		
		
		
		
		
	
			
		
		
			
					
		
	
	
			Level 2
		
	
				
		
	
		
			
    
	
		
		
		02-22-2021
	
		
		11:23 AM
	
	
	
	
	
	
	
	
	
	
	
	
	
	
		
	
				
		
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Should the AAA balance be $0 in the final return of an S Corp. that was never a C Corp so no E&P to worry about? Balance sheet is zeroed out at end of 2020. Distribution of cash and a computer purchased in 2011 that had taken the Sec 179 deduction. I show a positive AAA balance but should it be $0? I showed the cash distribution in the AAA but the AAA balance still shows a positive number rather than $0. Thanks.
		
			
				
						
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			sjrcpa
		
		
		
		
		
		
		
		
	
			
		
		
			
					
		
	
	
			Level 15
		
	
				
		
	
		
			
    
	
		
		
		02-22-2021
	
		
		12:18 PM
	
	
	
	
	
	
	
	
	
	
	
	
	
	
		
	
				
		
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Yes it should be zero. When shareholders leave, AAA gets reduced by their proportionate share.
The more I know the more I don’t know.
			
		
			
	
	
			
				
		
		
			elintx
		
		
		
		
		
		
		
		
	
			
		
		
			
					
		
	
	
			Level 2
		
	
				
		
	
		
			
    
	
		
		
		02-22-2021
	
		
		12:55 PM
	
	
	
	
	
	
	
	
	
	
	
	
	
	
		
	
				
		
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So where do I put the amount as a reduction to AAA in order to get the balance to $0?