Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
patmag
Level 3

Filing final tax returns and dissolving S Corp

Hello. Due to the pandemic my S Corp lost all of its clients and did not bring any income since March 2020. I want to close the business and final a final tax return. The company was formed in New York but it was ran in Florida. 

 

The company used my personal vehicle in 70% but only until end of March so I entered a 15% for business use. The car was claimed as assets since 2016 and had a 5 year amortization life. . I am not sure if I have to do anything to take it out from the asset before filing the final return and dissolving the business. Are there any additional forms or items which I need to fill out?

 

Do I need to do anything else besides marking the Final Return checkbox on federal tax return and NY state tax return?

 

Thank you!

1 Reply
MaryK1101
Expert Alumni

Filing final tax returns and dissolving S Corp

If you did not have employees, winding down the business is easier.  For an S corporation you must:

  • File Form 1120-S, U.S. Income Tax Return for an S Corporation for the year you close the business.
  • Report capital gains and losses on Schedule D
  • Sale of Business Property for each sale or exchange of property used in the business- this would apply to the S Corp business automobile.  

See IRS Closing a Business.  You also want to make sure you cancel your business registration with the secretary of state in the states you filed in. 

 

NOTE:

If  it was an S Corp and the car was not titled in the SCorp name, you cannot take the depreciation as a business expense- you would need a reimbursement policy for the personal use of your vehicle for the business.  You need to correct that and since it has been a few years, you should seek a tax professional. 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v