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Level 1
posted Jun 23, 2020 6:33:09 AM

Dissolving 1120-S

Dissolving a franchised S-Corp, had to pay 100k in fees, can I expense those cost?

0 4 388
4 Replies
Level 15
Jun 23, 2020 9:19:03 AM

Dissolving, selling, or otherwise conveying to a third party? 

 

Regardless, you should most likely seek professional tax, and legal, guidance for your situation.

 

Otherwise, the general rule is that you can deduct all ordinary and necessary expenses incurred during the operation of your business.

Level 1
Jun 23, 2020 10:53:49 AM

Dissolving, as it not an actual sell. I'm pretty much giving the business back to corporate and had to pay 100k in order to do so. 

 

Do you all offer live help?

Level 15
Jun 23, 2020 11:23:51 AM

You can get in touch with Support via the link below, but they might not be of much assistance in this particular matter since the exact nature of how the $100,000 would be treated will probably depend upon the terms of the contract you signed, either as a franchisee or thereafter (when you relinquished your interest). As a result, you might want to consult, in-person, with a tax professional.

 

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

Level 1
Jun 23, 2020 12:00:17 PM

Awesome thanks!