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March 4, 2023
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Taxes on closing a business

  • March 4, 2023
  • 2 replies
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I closed a s-Corp business last year and liquidated all my inventory. How do I process the money from the sale of inventory?

Best answer by ThomasM125

The sale of your inventory items should be reported as sales on your final S corporation return, the same as you would normaly report it.

2 replies

March 5, 2023

The sale of your inventory items should be reported as sales on your final S corporation return, the same as you would normaly report it.

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snopdog1Author
March 7, 2023

Are the funds then dispersed among the members? 

AliciaP1
March 7, 2023

Yes, as liquidating and dividend distributions.  See 1099-DIV distributions for more information.

 

@snopdog1 

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