S-Corp Dissolution

Forum|Forum|3 years ago
March 1, 2023
2 replies
20 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!

C

ChiHoangAuthor

Level 6

$10,000 is for inventory only and does not include cash on the bank account. The buyer bought the store for the inventory, not the corporation.

Do I need to zero out the balance sheet on the S-corp final return ? What transactions do I need to do to zero out cash, inventory, loan to shareholders, Capital and retained earnings accounts ?

Do i process form 4797 for the loss of sale ?

Thanks for your help

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