I closed my S Corporation on Dec 31. The company had no debt other than an amount owed to me when I provided cash to the company over the years to cover expenses when sales were inadequate. The amounts I provides were not covered under a formal loan agreement, so any funds I "loaned" to the firm were lost (can't support any capital losses). When the company was closed, the remaining cash in the company' s account was removed and returned to me (an amount far less than I had provided over the years). I am not claiming any personal (capital) loss for the amount of funds I provided over that time - just closing the books and walking away. However, when completing my TurboTax for my personal taxes, I am being required to complete "Sch K-1 S Corporation Additional Info - Disposition of Interest, Part II Line 1a". The problem is that the form assumes there was a sale of assets to a buyer. My S corp had no assets other than my cash which was sitting in the company account prior to closure. I can find no instructions for this specific "additional info" schedule on how to complete the form. Can I ignore this form since it doesn't seem to apply? Does any information from this "additional info" schedule get reported to the IRS?
The S corp's Schedule K-1 only shows the operational loss for the year in Box 1. Shares owned (Box G) at the beginning of the year are the same as the end of the year (other than the fact they are worthless now). Loans from Shareholders (Box H) has always been "0" (no formal loan documents ever existed).
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Ignore the nomenclature / language in the disposition area.
Here are my comments:
Ignore the nomenclature / language in the disposition area.
Here are my comments:
Thank you for your response.
You are most welcome
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