transfer the assets from scorp

[rickyg5]

i All,

I am planning to close my scorp and I am the only member/director/employee. I have been saving a lot of money on company account and my current corp to corp project is over and there will not be any income for the company. 

My question is that will there be personal federal/state tax on the money that is transferred from company account to mine after winding up the scorp if yes

can i transfer half of the company money to my personal account this year and half next year so that I am not in high tax bracket and I will keep on filing quarterly corporate tax with zero income. 

Any suggestions

Rick

[Mike9241]

you need to determine your tax basis in the S-Corp. 

on your 1040 k-1 you indicate final K-1 and use the quickzoom  link to enter disposition info.

the sales price is the distributions. enter your tax basis and dates stock acquired and date of disposal. Turbotax will do the capital gain/loss calculation. if there is any

[rickyg5]

Once i transfer to my personal bank account after filing the quarterly tax and closing the SCorp, does the transferred amount considered as personal income and I have to pay personal federal/state tax  for next year or it is tax free and I do not need to disclose to IRS.

[Rick19744]

Some additional comments:

• As noted by @Mike9241 , a key component here is knowing your tax basis in the S corp.  Without that, you will not be able to determine your overall gain / loss.
• You will need to file a final 1120-S and Schedule K-1.
• You will need to update your tax basis schedule for the appropriate lines (boxes) on your K-1.
• Your liquidating distribution(s) need to be reported on Form 1099-DIV in boxes 9 and 10 as appropriate.
• If you are distributing out any property (depreciable property), this is treated as if the S corporation sold the property at FMV.
• There are a number of issues, so you may want to consult with a tax professional.