A few comments:
- Essentially unpaid shareholder loans would be converted to capital contribution.
- Don't need to amend the final 1120-S.
- As a shareholder in a pass-through entity, you should be maintaining your tax basis in the S corporation.
- Now that you have received the final K-1, you should enter the appropriate K-1 boxes into TT.
- You should also update your tax basis schedule for all applicable K-1 items EXCEPT for any distributions on the final K-1.
- Also update the tax basis schedule for any loans that have not been reflected as capital contributions.
- When you come to the questions related to "disposing" of the entity you should answer "yes" and complete disposition.
- TT will then ask for the cost basis (which is your updated tax basis) and the "selling price" will be any distributions detailed on the K-1 box 16 Code D.
- This information will be transferred to form 8949 and Schedule D
- You also need to complete form 7203
*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.
