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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.
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Answered in 2 hours by:
3/27/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,705
Experience: Taxes, Immigration, Labor Relations
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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
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