Dissolve S-Corp-Loans FROM Shareholder Because I'm the only shareholder, I've been putting money into my S-Corp for a few years and calling it Loan from S/H. However, now I'm dissolving it, and the only thing left on my balance sheet is $217K owed to me, $1K common stock, and neg $216K retained earnings.
1. Can I just net these out to zero, or will the loan writeoff generate income for the corp?
2. If the answer to #1 is that it'll generate income, can I file amended returns for prior years and recategorize the loans as paid-in capital? That's really what it was.
3. If I do #2, what would the final entries be to dissolve the corp? |