Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I HAVE A CLIENT THAT HAS A FINAL 1120-S. IT HAS BEEN A TIME…

Customer Question
HELLO I'M DANY...I HAVE...

HELLO I'M DANY...I HAVE A CLIENT THAT HAS A FINAL 1120-S. IT HAS BEEN A LONG TIME SINCE I HAVE CLOSED A BALANCE SHEET. I CAN'T REMEMBER WHAT THE ADJUSTMENT IS, DAH. THE COMPANY WENT OUT OF BUSINESS, HUGE NEG R\E, LOANS NOT PAID AND NO EQUITY IN ANY EQUIPMENT

Accountant's Assistant: Thanks. Can you give me any more details about your issue?

.I HAVE A CLIENT THAT HAS A FINAL 1120-S. IT HAS BEEN A LONG TIME SINCE I HAVE CLOSED A BALANCE SHEET. I CAN'T REMEMBER WHAT THE ADJUSTMENT IS, DAH. THE COMPANY WENT OUT OF BUSINESS, HUGE NEG R\E, LOANS NOT PAID AND NO EQUITY IN ANY EQUIPMENT

Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Customer reply replied 2 years ago
Also, what about goodwill and finance costs that were amortized
Answered in 38 minutes by:
2/17/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,360
Experience: Taxes, Immigration, Labor Relations
Verified

If the business is not sold.

The goodwill that was purchased and amortized is classified as amortizable section 197 intangible asset.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 2 years ago

You will report the disposition of that asset (assuming it becomes worthless - and there will be a loss.

It is not clear what you meant under "finance costs" is that a loan?

Let me know if you need any help with reporting.

Otherwise,

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,360
33,360 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My client owns a multifamily house and files the 1065 for
My client owns a multifamily house and files the 1065 for it. The house is paid off so there is no loan on it. what would goes in the liabilities section in 1065?… read more
Carter McBride
Carter McBride
LLM
1,225 satisfied customers
Negative m2 balance in last year of s corp is identical to
negative m2 balance in last year of s corp is identical to loan from sharehodler loan. company had losses, zero shareholder distributions. how to report on the m2? I feel the ending RE should be zero … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have an S corp filing their final return. They have
hi Steve! I have an S corp filing their final return. They have negative $ 12K in their retained earnings. Does this essentially represent a long term capital loss?… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I sold all of the assets of my S-Corp and stopped trading.
I sold all of the assets of my S-Corp and stopped trading. After recognizing the portion of the sale price attributable to the physical assets and the associated depreciation recapture, I have worthle… read more
BK-CPA
BK-CPA
Bachelor's Degree
687 satisfied customers
, I have an S corp. I'm the only shareholder. This year,
Hi, I have an S corp. I'm the only shareholder. This year, for the first time, I had an ordinary income loss and it exceeded my R/E from the end of last year. During the year, when I deposited money f… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
we are dissolving an s-corp with negative Retained Earning
we are dissolving an s-corp with negative Retained Earning and loans FROM shareholders that will be forgiven. There is asset impairment, including goodwill. Does the loss on asset impairment flow thro… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Our company, treated as S-corp for tax purposes for many years,
Our company, treated as S-corp for tax purposes for many years, reverted to C-Corp (termination effective 10/8/13), and now must file 2 short year tax returns for 2013 . On 10/7/13, our balance sheet,… read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,072 satisfied customers
HI, HERE ARE THE FACTS: Sole prop seeks to become treated
HI, HERE ARE THE FACTS: Sole prop seeks to become treated as an S corp for tax purposes on January 1, 2012. The s Corp has 3 shareholders, husband (original sole prop), wife, son All property and equi… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,360 satisfied customers
I am closing out a C corp...there is only 1000 in Common Stock,
I am closing out a C corp...there is only 1000 in Common Stock, a loan to the shareholder for $4473 and negative retained earnings of $5473....I am not going to do anything on the corp return for it 0… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
S Corp bought land, build property and faced foreclosure.
S Corp bought land, build property and faced foreclosure. Total cost was 2.6 mln. On foreclosure we have the following: Bank amount due $2.3 mln, Interest 45k, Publication costs 575.00 Attorney Fees 1… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Do I have a taxable income issue and basis adjustment issue
Do I have a taxable income issue and basis adjustment issue with the following: I am preparing a final year accrual basis tax returns for 2 retail operations: an S-corporation/1120S and an LLC/1065 fo… read more
Jax Tax
Jax Tax
Senior Tax Attorney
Master's Degree
1,363 satisfied customers
I am trying to dissolve an s-corp with 1 shareholder that has
I am trying to dissolve an s-corp with 1 shareholder that has not been in business for years. There are no assets and accounts payable and a loan from the shareholder are to be written off. Retained e… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have an S Corp that was a C Corp prior to 2010. Trying to
I have an S Corp that was a C Corp prior to 2010. Trying to figure out what should be zeroed out and what accounts should have balances in QuickBooks as my Tax Accountant do not complete the end of ye… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
I have a client that closed his business. I have a shareholder
I have a client that closed his business. I have a shareholder loan outstanding that he owes the company. He also has retained eranings and APIC that exceeds the amount of the shareholder loan. Do I c… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
On a final 1120-S tax return, the Retained Earnings and Line
On a final 1120-S tax return, the Retained Earnings and Line 8 of Schedule M-2 show nwgative balances of 30,000. There is an asset distribution to the shareholder of $25,000. The distribution was reco… read more
BK-CPA
BK-CPA
Bachelor's Degree
687 satisfied customers
If an s-corp is liquidating, do i list the common stock on
If an s-corp is liquidating, do i list the common stock on the balance sheet portion of the 1120-s?… read more
Chad Oberg
Chad Oberg
Director
Bachelor's Degree
172 satisfied customers
Small business, California LLC How do i properly account for
Small business, California LLC: How do i properly account for my investment of $$$ to purchase a company comprised partly of inventory and mostly of a website and customer list+"goodwill", on my tax r… read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
Final 1120S Corp tax return; converting from S Corp to Sole
Final 1120 S Corp return. Total assets are 15K, Fixed Assets 10K. 100% owned by 1 individual. Do I zero out the balance sheet through the capital account? Thanks in advance.… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master's Degree
2,165 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x