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
2006-12-26 05:58:55 · 3 answers · asked by why? 1 in Business & Finance ➔ Taxes ➔ United States
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.
2006-12-26 07:03:32 · answer #1 · answered by waggy_33 6 · 1⤊ 0⤋
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.
2006-12-26 07:03:23 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
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
2006-12-26 06:09:03 · answer #3 · answered by lily 4 · 1⤊ 0⤋