The S corporation was dissolved by shareholder in 2010 and filed a final return for both federal and NYS purposes. In 2011, the office space that S corporation was leasing was sublet. For the year 2011, the corporation received a 1099-misc with the rental income paid by sub lessee with corp ID#. The corporation also paid the rental expense to the landlord. The amont paid by the corporation was little over than the income received from sub lessee, so its not a complete wash. Where should the rental income and expense be reported? Should it be reported on the shareholder's personal tax return since corporation already filed the final return? if yes, then where?

Any help would be greatly appreciated. Thanks.

“Where the rental income and expense should be deducted?”----> The S/H cannot deduct the rent expense after the S cotp has been dissolved . The reason being that the rent expense pertains to the S corp that is no longer in existence especially since the expense was paid in the year subsequent to the dissolution of the S Corp.
“ Should it be reported on shareholder personal return since the corporation already filed a final return, and if yes where?”---> the expenses cannot be deducted on the s/h’s personal /Individual tax return based on the facts and circumstances.