Sorry, i am just trying to get this right.
From some other site online it says
" If the corporation distributes an amount greater than shareholders' basis in their stock, then the corporation reports a loss on its final tax return. If it distributes an amount smaller than the shareholders' basis, then it reports a taxable gain. In other words, a shareholder's gain is the firm's loss; a shareholder's loss is the firm's gain."
Is this actually true?
If so, how does one specifically report this transaction on Schedule D? Take this example: there is a single shareholder who bought all shares of the C corp in 2015 for $100 dollars. In December 2022, the C corp shuts down and returns all remaining assets, which is only cash, of $75 dollars to the shareholder.
The C corp sends a 1099-DIV to the shareholder reflecting the $75.
But here is the part I can't figure out - how does the corp reflect this transaction on schedule D of their 1120 return? Presumably it is a capital gain for the company (the corp sold all the shares in 2015 for $100 dollars and bought them back at liquidation for $75). Turbotax won't let me list a "purchase" date of December 2022 and a "sold" date of 2015. So what is the right way to represent this supposed $25 capital gain for the corporation?
Thanks in advance for the assistance.
