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I am closng my S-corp that has $352K prior c corp earnings.

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Second opinion] I am closng...
Second opinion] I am closng my S-corp that has $352K prior c corp earnings. The only assets are cash and land and then negative retained earnings. How would I treat the prior c-corp earnings? I have 127K in cash and $83K in Land. My negative R/E is $114,588.41JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: Current year loss is $47,955. Not sure if that's needed.
Submitted: 8 months ago.Category: Tax
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Answered in 2 hours by:
12/13/2017
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 8 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,125
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Hi from Just Answer. I'mCustomer and can assist.

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 8 months ago

I assume you had both negative c retained earnings and s corp retained earnings. I also assume the funding came from loans you made over time and your stock investment.

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 8 months ago

I see after rereading that you had c corp retained earnings, and s corp retained deficit. My response considers those facts.

You are looking at a dissolution of your s corp. I would allocate the repayment to loans made by you first, since they could be repaid first at no tax cost. Then your original investment can be repaid. Then any excess would be taxable to you as a dividend from the prior c corp retained earnings.

Other factors like assumed debt could complicate this as well.

I hope this meets your needs. Positive feedback is appreciated. I'mCustomer

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