Thanks Rick. I wasn't aware of the liquidating distribution. I would have reported that in the normal spot on Schedule K-1 line 16. It looks like I have alot of homework to do. That's why I'm getting ahead of it now!
I thought of something. If I transfer all assets and cash to myself and take liquidating distributions on Dec 31, for the balance sheet portion of the 1120-S form, that would leave me with nothing but zeros for except maybe a couple equity items that would wash to zero. Is that how it's normally done? It seems like the IRS might have a problem with that because they wouldn't be able to see that value of the assets before they were transferred.
