Hi,

I am doing the final return for our Travel Agency, an S-Corporation. We closed the business April of last year as we were unable to sell it. As of the end of 2005 all that remains on the Balance Sheet is Assets - Cash $14 and Intangible Assets less Accumulated Amortization $21,729 . Liabilities and Shareholders' Equity - Capital Stock $15,000, Retained Earnings $8499 and Treasury Stock $1325.

The question is can the Intangible Assets less Accumulated Amortization and / or the Capital Stock be taken as a loss and if so what Forms would be used. Does anything need to be done with the Cash, Retained Earnings or Treasury Stock? Any help you could provide would certainly be appreciated.

Thanks,
Harry

Harry:

Run, don't walk, to the nearest tax professional!

Form 1120S is not a tax return for amateurs. In fact, a fair number of "tax professionals" cannot complete them accurately as well. You need to get professional tax help from a tax pro with experience in Sub-S corporation returns.

I recommend you see an enrolled agent. They are generally cheaper than CPAs and have the required expertise.