S Corp Final Tax Filing

There are a number of issues that need to be considered:

• When an S corporation liquidates, there is generally a liquidating distribution to the shareholder's
• Any liquidating distributions need to be reported on a form 1099-DIV (and not on the K-1) in boxes 9 and 10 depending on the nature of the distribution.
• Any assumption of debt reduces the gross value of property distributions.
• Also, if tangible property is part of the liquidating distribution, then the S corporation needs to report this as if the property was sold at FMV and report this gain or loss.
• The liquidating distribution is important as it will drive your gain or loss on the S corporation investment.
• You should technically file a form 966 and there could be some state filings with the Secretary of State as well.
• This liquidating distribution could become somewhat complicated in getting it right at both the company and then shareholder level which is why I recommend you may want to meet with a tax professional for the final return reporting.