At the end of 2016, I dissolved an S-Corp that I originally opened with $1,000 for 1,000 shares of Capital Stock. Can I now take a deduction for a loss by showing a sale of those 1,000 shares for $0 and using the following forms to accomplish the sale/loss? If there's a better way, please let me know.
On my personal taxes, use Schedule D (Capital Gains and Losses), Part II, to enter Proceeds of $0 and the basis of $1,000, which results in a net long-term capital gain or (loss) of -$1,000.
And on Form 8949, Sales and Other Dispositions of Capital Assets, Part II, check (F) for transactions not reported on Form 1099-B, enter $0.00 for Proceeds, $1,000 as Cost or other basis, original date – 1/3/2008, and Date sold - 12/31/2016, and Gain or (loss) $-1,000.
Doing this creates a K1S Addl Info form in TurboTax. In Part II Disposition of S Corporation Shares, 1a was checked indicating a fully-taxable transaction (sale), Lines 2 & 3 shows dates shares were sold and acquired, Line 7 Basis of $1,000, Line 8 loss of $-1,000, Line 10 Long-term (loss) $-1,000.
Now, the K1, Section A, Regular Tax, Line 6d and 6e shows $-1,000 in both columns (a) and (c) for (Loss) and Net Income (Loss) Allowed. The entries are duplicated in Section B Passive Activity Adjustment to Income or Loss – Alternative Minimum Tax Purposes.
Last question...these forms/steps are all in my Personal taxes...are there forms/steps I need to perform in by S-Corp Final Return?
Thanks...I really appreciate the help.
