AliciaP1
Expert Alumni

Deductions & credits

You need to issue yourself (from the S-Corp) a 1099-DIV reporting the dividend distribution you received (from your retained earnings of the business).  

 

Also, you should have reported the assets (even completely depreciated) as sales at fair market value to you for their distribution on the S-Corp final tax return (as per the instructions on Form 966 filed when you decided to dissolve the company).   The S-Corp will compute the gain or loss on the assets (gains or breakeven since you say they are fully depreciated) based on the FMV and report that on the K-1.  If you did not do this, you will need to amend your final S-Corp return.

 

Once you have your final K-1 with everything reported correctly and the distributions noted on your Form 7203 (including any property distribution values), you will use the ending basis as the value of your stock entered for the stock "sale" and TurboTax will calculate your gain or loss as appropriate.

 

Closing a business is a tricky thing, so you may find it beneficial to find a tax professional in your area who can help you wrap things up.

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