S corp dissolution. How to report in sole shareholder 1040? The final 1120S still shows assets being depreciated, the balance sheet is not zero-ed out. The S corp is being closed now (2012) although the final K1 was in 2011.
You would report any Schedule K-1 income, loss, etc. for each year that you receive a K-1. You may also have to report a gain or loss on your sale or disposition of the S corporation interest, if any.
Thank you,
Mike
Thank you Mike for your answer.
Ok, so for 2011 I include the loss reported in K1. Since it's the final K1, Do I have to do anything regarding the assets in the S Corp? Don't you think there should have been any type of distribution for the FMV of the assets held in the S Corp?
This is a one shareholder S Corp.
Thank you again.
If so, I think it would be reported on Schedle K-1, box 16 (see below).
You may want to contact the S corporation.
Thanks,
Mike
Code D. Property distributions. Reduce the basis of your stock (as explained earlier) by distributions, not reported on Form 1099-DIV, of property or money. This amount will include any amounts included in income with respect to new clean renewable energy, qualified energy conservation, qualified forestry conservation, qualified school construction, build America, or (for bonds issued after October 3, 2008) qualified zone academy bonds. If these distributions exceed the basis of your stock, the excess is treated as capital gain from the sale or exchange of property and is reported on Form 8949 and Schedule D (Form 1040).
