Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I started a S Corp in June 2017 i wanted to closed it since…

I started a S Corp...
I started a S Corp in June 2017 i wanted to closed it since the business did not produce enough revenue.
I did my income statement and got 7100 in losses I basically put the money from my pocket.Question. Since I open the corp in 2017 and I want to close it as of 12/3/17 can I deduct all the loses?
Are my basis the amount of loans I put in the business 5124 plus 3000 as my initial investment?Since I am closing the corporation on the same year that it was open ( 2017) . Can I deduct the losses on my income statement without considering the basis.
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 hours by:
3/27/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,142
Experience: Taxes, Immigration, Labor Relations
Verified

There will be tow reporting items on your personal tax return.

First is K1 issued by S-corporation.

That is a final tax return for S-corporation and final K1

Losses passed to you on K1 will be deductible up to the basis you have in S-corporation shares.

.

Then - you will report the disposition of S-corporation shares - and may have gain or loss on that disposition.

You will need to adjust your basis according to items reported on K1 - for that use the worksheet in instructions.

Then will report the disposition of shares as deemed sale.

You might want to convert loans into capital contributions - and that amount will be added to your stock basis.

Final distribution (if any ) from S-corporation will be your deemed sale price.

Let me know if you need any clarification this matter.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,142
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
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: 33,142
33,142 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 husband and I formed an LLC for Rental Property. Our
My husband and I formed an LLC for Rental Property. Our initial investment was the house we paid cash for, and we put a total of $19,000 in improvements and repairs (again our money, no loans). When f… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,494 satisfied customers
I am filing an extension for an S-Corp for Federal and NJ.
I am filing an extension for an S-Corp for Federal and NJ. The NJ tax payment for S-Corps is not due until 4/17 even though the returns are due on 3/15. I would think it is OK to file the extensions n… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,494 satisfied customers
I am doing first 1120 S tax return for former sole
I am doing first 1120 S tax return for former sole proprietor business. I am trying to determine how to handle depreciation on assets that were purchased in sole prop, then transferred to S Corp. … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,494 satisfied customers
Hope you are doing well. Will you be able to help with the
Hello Steve,Hope you are doing well. Will you be able to help with the appeal for late filing penalty on S corp. See attach paperwork. I submit the letter dated 12/18/17 and just received the denied l… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I was a partner in a company in 2017 and personally paid for
I was a partner in a company in 2017 and personally paid for materials and supplies for the company. My partner closed the business in November 2017 and I will not be reimbursed for my expenses. This … read more
Carter McBride
Carter McBride
LLM
1,192 satisfied customers
I am dissolving our s-corp as of 12/31/17, In March 2017 my
I am dissolving our s-corp as of 12/31/17, In March 2017 my husband and his partner paid off the business debt. Can we claim this on the 1120S as a bad debt since the business was unable to pay this o… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 satisfied customers
I am in the process of closing out an Estate and have a few
I am in the process of closing out an Estate and have a few items I need help with:- The estate currently owns 100% of an s-corp. Does the estate pay taxes on the earnings of the s-corp or do they flo… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am filling out the 1041 for my father's estate and trying
I am filling out the 1041 for my father's estate and trying to figure out what losses I am allowed to take. We sold the house for $171000 netting 160000 after fees. Can we take the $11000 as a loss an… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I HAVE A CLIENT THAT PURCHASED A BUSINESS IN 2014. He paid
i HAVE A CLIENT THAT PURCHASED A BUSINESS IN 2014. He paid 22,500 for the equipment and 18,000 for goodwill. in 2014 he wrote off the equipment to offset the income, totally expense. now the business … read more
taxmanrog
taxmanrog
Master\u0027s Degree
996 satisfied customers
Registered company as LLC and elected as S corp purpose. Did
Registered company as LLC and elected as S corp for tax purpose. Did not issue stock. Spend 50,000 to purchase equipment. For tax return 1120S page 4 schedule L, Asset is 50,000. for the liability and… read more
BK-CPA
BK-CPA
Bachelor\u0027s Degree
919 satisfied customers
I ran an s-corp for three years. I put a lot of my personal
I ran an s-corp for three years. I put a lot of my personal money into it. I closed it down on April 15, 2014. I understand I will still have to file the proper tax documents next tax season? Can I or… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
If I close my S corp and have no assets remaining, nothing
If I close my S corp and have no assets remaining, nothing to distribute and have paid in capital of $10,000 and capital stock of $1000; retained earnings of . Don't I have a capital loss of $11,000? … read more
R. Klein, EA
R. Klein, EA
Tax Advisor
Master\u0027s Degree
3,104 satisfied customers
I am an equities trader trying to profit from daily market
I am an equities trader trying to profit from daily market fluctuations. Instead of reporting capital gains and losses on schedule D, would it be better to report it as a sole proprietor as business i… read more
Charles Markham
Charles Markham
Principal
Masters Science Taxation
755 satisfied customers
if I paid 20,000 of my personal money to pay off a business
if I paid 20,000 of my personal money to pay off a business debt and the business closed. Is this a bad debt on my federal return?… read more
RD
RD
Self Employed
Master\u0027s Degree
1,164 satisfied customers
i purchased a timeshare in the bahamas in 2005. I want to
i purchased a timeshare in the bahamas in 2005. I want to sell it and will probably lose $40,000. Can I write off the loss? what form would i use?… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,142 satisfied customers
I own a restaurant and am a sole proprietor and totalled my
I own a restaurant and am a sole proprietor and totalled my business vehicle 12/22/07. It was put into place 6/2003 and had $28 basis left. I got an insurance check that was used to pay off the loan a… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master\u0027s Degree
3,197 satisfied customers
My wife is currently an at-home mom. She plans to open a ...
My wife is currently an at-home mom. She plans to open a Chiropractic office soon that we know will lose money for the first few years. I make between $215K and $315K per year and would like to know i… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I signed a preconstruction sales contract in June 2004 for ...
I signed a preconstruction sales contract in June 2004 for the purchase of a condo and was required to escrow/put down 5% of the sales contract. Subsequently, I changed jobs which impacted where I wan… read more
jonacpa
jonacpa
CPA
48 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