Final C Corp is dissolving in 2013. Personal money is contributed by the shareholder to the corporation in 2013 to pay bills and it is coded on the corporate books as additional paid in capital. No shares were issued.
I've been told that the additional paid in capital that incur in 2013 would qualify as L/T gain treatment since it is related to his original investment. The company incorporated in 1997. However, if the money was contributed in 2013 and the company dissolved in 2013 wouldn't this be short-capital gain? Any thoughts on how to handle the APIC in regards to short term capital gain or long term capital gain treatment on his individual return?
Thanks
David