Hi Everyone,

I have a client who is a sole owner of an S Corp. She has many assets (Equipment and Furniture) and is closing the company. She already filed the paperwork to dissolve with the state but I am unsure about how to handle the assets and loans payable.
She will be filing a short year return. How do we show her payment for the loans payable?
What happens to the assets? Depreciation expense?
Does she need to file a 966 form with the IRS?

Any advice you could offer would be greatly appreciated. I tried calling the IRS but they stated that this is a tax law issue and they no longer advise on tax law.

Thanks and have a great day.

Sincerely,
Rosa