1120 Loss on "$100 initial shares" from Dissolution

[cchasepa]

For a C Corporation that issued suppose $100 of shares on incorporation, the shareholders contributed cash. The company dissolved and did not have funds to repay shareholders. For an 1120, is the fact shares are now worth $0 reported somewhere on dissolution?

The irs.gov notes to use Schedule D to report Capital Gain and Loss which would be for capital assets. Where would Initial $100 of Shares issued to investors, now worth $0 be listed for 1120?

[TaxGuyBill]

It sounds like the 1099-DIV will show $0 for the Liquidation Distributions.

On the 1040, the taxpayer will report of the sale of some stock on 8949/Schedule D, with a selling price of $0 and a purchase price of $100.

[cchasepa]

If I am reading your answer correctly, the shareholder "person" would use 1040 and 8949 Capital Gain and Loss on their personal return and not the C Corporation attaching 8949 to the 1120?

[TaxGuyBill]

Correct.