S-Corp Dissolution

Forum|Forum|3 years ago
March 1, 2023
30 replies
57 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!

qbteachmt

Level 15

I thought it's a simple question on how to process a sale transaction of S-corp (mainly inventory) in ProSeries and everyone is focusing on the accounting side of it. I think it should not increase cost of goods sold (when I zero the inventory balance) which impacts ordinary profit/loss. Rather it should affect capital gain/loss for this sale. But I don't know how to make it happen in ProSeries.

If you all don't have answer, I'll figure out myself. Thanks for all your time.

"I think it should not increase cost of goods sold (when I zero the inventory balance) which impacts ordinary profit/loss."

Yet, you told us the sale was only for the inventory. That's no different than regular sales. Think of it differently: they put everything in the store on sale at a deep discount and now are closing their business. No difference.

You've been told how to do this many times. Re-read your own topic and all replies.

You have to match the buyer details to the seller details.

You can't make any adjusting entries in Tax Preparation programs. That's not their function.

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