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Old 03-14-2018, 05:04 PM
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Question C corp dissolved- write offs possible?

C corp dissolved- can it issue something like K-1 for friends and family investors for them to write off their investment?



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Old 03-15-2018, 05:40 AM
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K1's aren't used for a Form 1120 even though a Sch K of 1120 is part of the Form 1120 itself. it's very rare to make investments into any other form of busines in general, the effect that C corp dissolution has on shareholders depends on the financial situation of the corp and on how the C corp dissolves; For tax purposes, the IRS treats a corp dissolution the same as a stock sale. If the corp distributes an amount greater than shareholders' basis in their stock, then the corp reports a loss on its final tax return. friends and family investors need to claim losses on their 1040s.



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Old 03-15-2018, 11:25 AM
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As backup for friends and family writing off investment what documentation from the company is needed
?



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Old 03-16-2018, 12:28 AM
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Quote:
Originally Posted by chosencheng View Post
As backup for friends and family writing off investment what documentation from the company is needed
?
I guess The corp's Sch D of 1120 is one of them.



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