I have posted operating losses for my business since inception in 2014. All loss was at-risk because I was the 100% owner. I did not use any debt, but paid for losses myself. In 2016, I dissolved/liquidate the business. Assets were sold at market value and then the cash was distributed to me as the sole shareholder. I had previously maintained a positive balance in my business account even though the business was operating at a loss. Consequently, the amount that was transferred out of the business bank account during dissolution was slightly greater than the operating income reported for the year (liquidation + balance + net income for remaining months of operation). When I prepare my 1099-DIV, should the value of the distribution match the earnings for the year? This would essentially balance the stock account and reflect 0 gains. Intuitively, this seems to be correct since all assets were sold at fair market value. The alternative would be to report the full bank account balance as the distributed liquidation dividend.
