Balance sheets for final corporation tax return

Technical topics regarding tax preparation.
#1
Keyad22  
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1209
Joined:
13-Jun-2016 9:51am
Location:
Bay Area, California
Hi everyone,

Have a question for final corporation tax return.

Client decides to close the C corporation. The ending balance sheet as of 12/31/2018 before closing is like this:

Cash 90
Start-up expense 36,000
Amortization -15,600
Total Assets 20,490

A/P 39,000
Loan from shareholders 17,900
Paid in capital 750
Return earning -34660
Net income for 2018 -2500
Total Liability and Equity 20,490

A/P 39,000 was legal fee and the attorney waivered it when C corporation made the dissolution.

When client made the dissolution, should he deduct unamortized start-up cost?

Final F/S (version 1)
Cash 90
Start-up expense 36000
Amortization -36,000
Total Assets 90

A/P 0
Loan from shareholders 17,900
Paid in capital 750
Return earning -34660
Net income for 2018 16,100
Total Liability and Equity 90

Net income for 2018 should be
Net income before dissolution: -2,500
Plus: A/P waivered 39,000
Minus: unamortized start-up cost :-20,400
Final net income for 2018 : 16,100

(version 2)
My co-worker says everything in the ending balance sheets should be zero in the final tax return.

The difference, my co-worker says, just plugs-in the final profit and loss.

What’s your opinion?

Thank you,
 

#2
Derby  
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104
Joined:
10-Oct-2017 7:52am
Location:
Flint, MI
Corporation is insolvent, make sure you don't put 39000 in COD income on the return.
 

#3
JR1  
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6041
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21-Apr-2014 9:31am
Location:
Western 'burbs of Chicago
Final should show 0's....and I agree with your figures. Hoping there's some NOL to use against the profit.
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