sri97
Jun 7, 2014, 09:11 AM
What transaction is necessary to handle this situation?
My husband is sole proprietor of his s-corporation. In 1998, our tax attorney calculated a $55000 LOANS FROM SHAREHOLDERS. (My husband and I are the ONLY shareholders). After 16 years in business, our Retained Earnings account is a NEGATIVE $54000.
We wish to shut down the s-corp this year. The s-corp has no other debt, but does NOT have sufficient funds or assets to repay the LOANS FROM SHAREHOLDERS. We no longer use the tax attorney, but have been using Turbo Tax for Business to file the s-corp's 1120s return.
What transaction will close out the LOANS FROM SHAREHOLDERS?
What kind of impact will this transaction have on the s-corp's 1120s tax return and our own 1040 personal return?
My husband is sole proprietor of his s-corporation. In 1998, our tax attorney calculated a $55000 LOANS FROM SHAREHOLDERS. (My husband and I are the ONLY shareholders). After 16 years in business, our Retained Earnings account is a NEGATIVE $54000.
We wish to shut down the s-corp this year. The s-corp has no other debt, but does NOT have sufficient funds or assets to repay the LOANS FROM SHAREHOLDERS. We no longer use the tax attorney, but have been using Turbo Tax for Business to file the s-corp's 1120s return.
What transaction will close out the LOANS FROM SHAREHOLDERS?
What kind of impact will this transaction have on the s-corp's 1120s tax return and our own 1040 personal return?