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As sole shareholder closing down the corporation how do I report my,500 non dividend distribution which results in Hello, Thanks for your queston.
If not, the following applies: Yes, you would report the 00 as a capital gain.
When a company has more liabilities than assets, equity is negative and no liquidating distribution is made at all.
This is usually the case in bankruptcy liquidations.
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Creditors are always senior to shareholders in receiving the corporation's assets upon winding up.