Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

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

Customer Question
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: 5 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 hours by:
12/13/2017
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 5 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,038
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified

Hi from Just Answer. I'mCustomer and can assist.

Ask Your Own Tax Question
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 5 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.

Ask Your Own Tax Question
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 5 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

Ask Your Own Tax Question
Was this answer helpful?
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,038
5,038 Satisfied Customers
Experience: 35 years tax experience, including four years at a Big 4 firm.

PDtax 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

4,495 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

15,272 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
I am receiving a substantial this year of cash and assets
i am receiving a substantial this year of cash and assets can u tell me how much the taxes will be … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Need help with the entries on a sale of S Corp assets. The
Need help with the entries on a sale of S Corp assets. The entity will remain open and start a new business. Cash was received for the inventory and assets. I know how to book those items. My question… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
The age old question, dividend versus salary. I make about
The age old question, dividend versus salary. I make about 120,000 per year as a salaried employee of another company. I am also President(100% share owner) of a C Corporation. That C Corporation has … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Just discovered $1000 dividend income. Will IRS be confused
Just discovered $1000 dividend income. Will IRS be confused if I send 1040X today when I just filed my 1040 yesterday? Should I wait a couple of weeks? … read more
Carter McBride
Carter McBride
LLM
1,078 satisfied customers
If I have aid taxes on interest and dividends every year for
If I have aid taxes on interest and dividends every year for money i a trust, do I need to pay taxes on the money in my trust cash account again when I withdraw the money? … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
110 satisfied customers
My soon to be ex husband received dividends on stock he
My soon to be ex husband received dividends on stock he holds. Dividends received from April 2017 - April 2018 should be transferred to me. The divorce will be finalized on April 17, 2018. He collecte… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have qualified dividends. They are included on page 1.
I have qualified dividends. They are included on page 1. When I do the Qualified dividends and capital gain tax worksheet they are included again. It appears that they are being taxed twice. What am I… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Are qualified dividends to be included in the ordinary
Are qualified dividends to be included in the ordinary dividend total required to be shown on line 9a? … read more
Carter McBride
Carter McBride
LLM
1,078 satisfied customers
I live in NH. My total dividends from Trusts are. $2,228,
$2,228, but not all of that is taxable on my federal tax return. What does NH tax ? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Do i pay income tax,on dividends on stocks,if they are
do i pay income tax,on dividends on stocks,if they are rolled over into more stocks. Or when i withdrawl, from my stocks… read more
abci168
abci168
Principal
27 satisfied customers
I have a question about tax exempt dividends in a mutual
I have a question about tax exempt dividends in a mutual fund that are from a state other than Oregon. Are they taxable in Oregon? This refers to tax schedule OR-ASC … read more
Carter McBride
Carter McBride
LLM
1,078 satisfied customers
If Non Resident Alien (NRA) for Tax Purposes has Dividends
If Non Resident Alien (NRA) for Tax Purposes has Dividends from Nuveen Tax Free Municipal security such as Symbol NVG, 1. Is the broker required to withhold 30% and/or 2. Does the NRA get the tax with… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Tax question: What happens to a fixed asset for a business
Tax question: What happens to a fixed asset for a business that becomes a hobby? Is it carried over if there is no hobby income? Please provide IRS references.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
SCHEDULE SHOWS DIVIDENDS FROM SCHWAB TWICE. INFORMATION
SCHEDULE B SHOWS DIVIDENDS FROM CHARLES SCHWAB TWICE. INFORMATION INCORPORTING DIVIDEND INFORMATION FROM BROKER IS CORRECT. HOW DO I CORRECT SCHEDULE B? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,132 satisfied customers
I paid French taxes in 2017 for real estate dividends I
I paid French taxes in 2017 for real estate dividends I received in 2016. I claimed my taxes as a tax credit last year, but it was denied since I paid the tax a year later. I just need to know how to … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Are royalties, interest and dividends reported in boxes 5,6a
are royalties, interest and dividends reported in boxes 5,6a and 7 of schedule K-1 required to be reported if held if stock is held in an IRA … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How are UTMA assets taxed by the IRS after the age of
How are UTMA assets taxed by the IRS after the age of transfer … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
We have an LLC taxed as a partnership. The only asset on the
We have an LLC taxed as a partnership. The only asset on the books is an Invest we made for 20% share in another LP. I just got the K1 the partnership capital account shows the beg contribution of 500… read more
taxmanrog
taxmanrog
Master\u0027s Degree
946 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