Not exactly sure what you are asking, as retained earnings are never reflected on Schedule K. Possibly you meant to say Schedule L?
There are a number of issues that come into play on a final return:
- Your ending balance sheet should be zeroed out.
- If you had any liquidating distributions, those should be reported on a 1099-DIV box 9 or 10 as applicable and NOT on the K-1.
- Your K-1 should only reflect any ordinary income or expenses as applicable
- Since obviously we can't see your return, you may have a book gain or loss to zero out the balance sheet and then have a M-1 for this book to tax adjustment.
- Distribution of tangible personal property is treated as a sale, so this needs to be considered if applicable. Any gain on this distribution will be reflected on your K-1 and increases your tax basis in your S corporation stock.
- Hopefully you have maintained your tax basis in the S corporation stock. This is key in being able to determine the overall gain or loss.
- Don't forget you may have some state of Georgia filing requirements; ie Secretary of State.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
