Question
How do I remove the Loans From Shareholders and the negative Retained Earnings from the final tax return balance sheet?
I am finalizing an S Corporation that has just "Loans From Shareholders" and an equal amount of negative "Retained Earnings" left on the Balance Sheet. How do I zero these two out on the Balance Sheet? I also need my AAA "End of Year Balance" to be zero. If I enter the loan amount as cancellation of debt income and just delete the Loans From Shareholders amount, the Balance Sheet shows all zeros. But then the K-1 incorrectly shows the cancellation of debt as income.
