How to distribute assets to shareholders in exchange for shares when dissolving/liquidating a S-Corp

[MIsaak]

Good day,

I am trying to close my small two-shareholder S-Corp, but I don't understand how to handle distributing tangible assets to the shareholders in TurboTax as part of filing the final 1120S tax return (and 1099-DIV, if needed).  My understanding is that I am supposed to distribute the assets to the shareholders as "payment in full for the exchange of the stock".  The company has zero cash while still having outstanding Loans from the Shareholders that greatly exceed any potential sale of its remaining tangible assets.  Any insight would be greatly appreciated.  Thank you very much.

The S-Corp has paid all of its liabilities with the exception of its outstanding Loans from the two Shareholders.  All of the tangible assets were fully depreciated 10+ years ago, some as Section 179 and others as Special Allowance/Annual Depreciation.  The majority of the assets have no real Fair Market Value and just need to be thrown away because it wouldn't be worth trying to sell the junk.  The main exceptions are the two company vehicles and a trailer whose combined FMW is probably at most $4,000.  The Capital Stock in the Balance Sheet is $1,000 while the accumulated Loans from Shareholders is around $75,000.

[M-MTax]

https://ttlc.intuit.com/community/business-taxes/discussion/do-you-[product key removed]dating-distr...

[MIsaak]

Thank you for the response.

I appreciate the link.  I had actually seen that same post during my research, and it helped clear up some of my questions, but I still don't understand how to accomplish the distribution of the property in exchange for shares in TurboTax.  Where in TurboTax does one record the distribution of the assets to the shareholders and the subsequent "return" of their shares?  

The Business Property Disposal section doesn't explicitly provide an option for distributing assets to  shareholders.  How should the disposal of the assets be recorded in TurboTax, and then, is there somewhere in TurboTax that one is supposed to record something having happened to the shares as a result?