The tax return is what provides the basis information not the other way around. You need to enter your liquidating and dividend distributions into your Form 1120S to finalize and close out the business. These liquidations should also be reported on Form 1099-DIV which you will need to complete separately.
To enter your distributions into your 1120S in TurboTax Business you can follow these steps:
- Under the Business Info tab and Shareholder Information click Edit for the shareholder(s)
- Mark Check this box if this was the last year this shareholder held shares in XXX
- Continue and click Done Entering Shareholders
- On the Distributions to the Shareholder(s) screen mark Yes, the corporation made distributions to shareholders in 2022
- Enter the Fair Market Value (FMV) of the cash and property that was distributed to you and any other shareholders during the year and as the liquidation of the company
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