S-Corp Dissolution

Forum|Forum|3 years ago
March 1, 2023
2 replies
33 views

Client sold a grocery business operated under S-Corp. on 11/30/22 for $10,000.

Their balance sheet on the last day: cash 54,414, inventory 19,414, loans from shareholders 13,737, capital stock 40,006, retained earnings 19,736.

Please help me how to process transactions in ProSeries professional to dissolve the S-corp and realize loss of sale.

Thanks

ProSeries Professional

This topic has been closed for replies.

dascpa

Level 11

Look at the contract of sale for the allocation of price breakdown. File Form 8594. Take some continuing ed classes on the subject. If you understand the concepts, that makes the tax return input so much easier.

dkh

Level 15

Let's start with the $10,000. What is the breakdown - inventory, ~~assets~~ equipment (which you did not mention being on the Balance Sheet ), Goodwill ?

edited

IRonMaN

Level 15

Pesonally I've been looking for a sweetheart deal like that. Buy 54,414 of cash for only $10,000 and have them throw some inventory in for good measure. Heck of a deal. Now if the inventory was all Dove chocolate this would be a grand slam 😀

Slava Ukraini!

IRonMaN

Level 15

I know all the journal entries, but not sure how to make transactions in ProSeries. It's a big help if you could walk me thru.

This S-Corp was dissolved on 11/30/2022 and bank account was closed out.

Again thanks for your help.

The sale of inventory would be reported on page 1 of the return. If you know how to make all of the journal entries, then you should have a "zero" balance sheet at the end of the year.

Slava Ukraini!

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