I am working on preparing a Business Tax Return (form 1120) for a client. The past 2yrs returns will reflect $0 income but a negative expenses of unpaid salaries as indicated and some rental income loss.

Client indicated that the operation was pursed in those 2years but in the process of re-opening for business soon.  The rented space was subleased to another business who refuses to make timing rental payments due to COVID-19.