To make sure I understand ,what is meant by the "liquidating distribution"? Is that the Cash and the FMV of any non cash Assets?
The shareholder has adjusted their basis in the s corp by the gain or loss the S corp recognized when disposing at FMV through the S corp Asset Entry worksheets.
Then on the Shareholder's Personal 1040 they compare their updated basis to the value of the Cash and Non Cash assets received to see if they have a capital loss or gain to be reported on the 1040?
This community is so helpful!
