I have a S corp that had income in 2022. But last year I lost my consulting engagements and did not produce any income in the corp except interest income. took full time

[itsdhiraj]

I have a S corp that had income in 2022. But last year I lost my consulting engagements and did not produce any income in the corp except interest income. took full time job and got a W2 income last year.

Will S corp be materially engaged ? Not sure how I can answer that question. I am 100% owner of the company

[PatriciaV · Accepted solution]

Yes, you are still materially engaged if you are the sole owner. Report the interest income on the S-Corp return. If you don't plan to continue this business, you may consider dissolving the S-Corp now to avoid having to file business returns in the future.