Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-30-2017, 04:39 PM
Junior Member
 
Join Date: Mar 2017
Posts: 1
Help! What to do with paid in capital/common stock when s corp dissolves?

When an s-corp dissolves what to do with the common stock 1,000 and paid in capital 2,850? Where on 1120S does this go and does it carry over to K-1's?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-31-2017, 01:18 AM
Moderator
 
Join Date: Oct 2010
Posts: 4,838
in the S Corp, cash or capital contributions would make the common stock for each shareholder rise or fall depending upon which stockholder made the capital contributions, however everything passes through the AAA account.You need to review the AAA calculation. AAA is increased for the stock 1k, paid in capital 2850. The PIC will also increase AAA. Non-dividend distributions taken over the years should have decreased AAA. The difference between Retained Earnings and AAA is basically tax treatment items. Distributions exceed AAA ?d betrated as capital gain on SCh D



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Inherited common stock-capital gain hookdog For 2015 0 02-05-2016 09:55 PM
Capital Gains on Stock Sales st20842 Capital Gains 1 04-18-2015 07:39 PM
Tax treatment of paid-in capital, capital & common stock when closing S Corp JILLJJOHNSON S-Corporation 1 02-28-2015 03:17 AM
Adjust Value of Paid-in Capital DStirpe S-Corporation 1 02-04-2013 08:04 AM
What happens to paid-in capital after dissolution? arcteryx S-Corporation 0 02-03-2009 02:37 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning