Shareholder's Equity is the combination of Common Stock, APIC, Shareholder Contributions and Distributions, and Retained Earnings. Shareholder's Equity plus Liabilities are one side of the Balance Sheet while the other side is Assets. Your Balance Sheet is in balance when the 2 sides equal each other.
On your tax return, you should zero out common stock against distributions since you liquidated the value of the stock when you closed the business. Then you should use the Adjustments to Shareholder's Equity line to input the offset to Retained Earnings or report Distributions. If your Balance Sheet is in balance these would already be offsetting numbers.
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