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How do I enter Liquidating distributions for a closing S corp?

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Level 3

How do I enter Liquidating distributions for a closing S corp? I do not want them to go to K-1 or K. I recorded them on 1099-Div.  How do I reduce retained earnings for liquidating distributions?

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3 Replies 3
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Level 15
Since distributions are a return of equity, I don’t believe there is such a thing as a liquidating dividend for an S Corp.
ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 12

An S corp doesn't issue a 1099-Div to anyone.

"How do I reduce retained earnings for liquidating distributions?"

By showing what was distributed, such as Funds (asset), stuff (asset), and perhaps debt assumption, to whom and how.

"I do not want them to go to K-1 or K."

Hmmm...are you sure about that statement?

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"Level Up" is a gaming function, not a real life function.
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Level 5

I simply enter "Corporate Dissolution" on the M-2 on either the Additions or Reductions line and that zeroes out R/E so that there is no ending balance. Then I also enter 0 on page 1 for Assets.

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