I'm closing my S-Corp. I am the only shareholder. I made loans to the S-Corp but it's out of cash.

If I forgive the debt does that create income for the S-Corp? And how would I enter that in TurboTax?

I can zero out the balance sheet easily by offsetting loans outstanding against Retained Earnings and Capital Stock. Both belong to me, and they offset perfectly. Is it okay to take that approach? If so, how can I input in TurboTax?