We are filing a final return for our S Corp which owned several rental houses and sold them in 2021. We have distributed all the money and posted the distributions to Retained Earnings on Quickbooks as our former cpa advised in the past. The only remaining balances are common stock, which is the amount the owners contributed and retained earnings which now has a negative balance due to the large distributions this past year. Turbotax is saying our retained earnings should have a zero balance. Should we post the distributions to common stock first to zero it out? Should negative retained earnings be shown as zero on the tax return balance sheet? We're ready to file the return other than this. Thanks in advance for any help!
