S-Corp Dissolution

Forum|Forum|3 years ago
March 1, 2023
30 replies
60 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

Thank you for your response. You don't need to go thru the accounting part of my question. I just need how to handle the capital loss on sale of the business in ProSeries. Do I need to show it on sch K-1 and how ? Or I just show the loss on form 4797 on the personal tax returns ? If I zero inventory, cost of goods sold will increase and I don't think it's appropriate to show the sale of business thru regular operating loss as you described.

Thanks

You were given the answer a couple of times. If you don't like the answer provided I think you are on your own.

Slava Ukraini!

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