My wife and I own an S-Corp (50% each). The business has basically failed and the value of the company is 0. We have almost $800k in paid in capital in the balance sheet. We are keeping the company intact because of some existing litigation with a landlord. Is there a way to write down the value of the paid-in capital as an interim step before folding the company in 2014? All assets purchased (3 retail stores and fixtures) have been disposed of and the only business left is a small consulting business. There is a minimal income still coming in.