I closed my corporation in middle of the year and filed all my corporation taxes till then and?
Posted on March 28, 2009 by admin
why? asked:
since then I consider myself selfemployed and have paid estimated taxes. The question is this: what and how should I file taxes at the end of this year? Does any taxes I paid earlier in the year towards my corpration prior to closing comes into accout towards my 2006 return? or do I only pay taxes on amount earned after my corporation was closed? Thanks
since then I consider myself selfemployed and have paid estimated taxes. The question is this: what and how should I file taxes at the end of this year? Does any taxes I paid earlier in the year towards my corpration prior to closing comes into accout towards my 2006 return? or do I only pay taxes on amount earned after my corporation was closed? Thanks
I would use a tax professional for that,but I think the taxes you paid prior account on your 2006,plus I believe you also pay taxes on amount after your corp closed
Your corporation will claim taxes paid on Form 1120 – any refund will go to you but is not a part of your Form 1040. You need to report all income from company on your 1040 i.e. salary, dividends, capital gain or loss on company stock.
You would only report the income earned outside the corporation on your 1040. The only corporate effect on your personal return would be a gain or loss on liquidation of the corporation. Any gain would be a capital gain and a loss could be ordinary if your investment in the corporation qualifies as 1244 stock. If it doesn’t qualify as such the loss would be a capital loss.