Whether you report the gain as a long-term or short-term capital gain depends on how long you have held the stock. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012. Answer: Ricky - Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. We will purchase a whole house full of items or one piece of furniture. How do I treat this money on my tax returns. Most Read News Stories to determine by litigation or agreement the amount of (damages, indebtedness, etc) 2. Every year it would get money, it would deduct 44% State and Federal taxes and give 56% to share holders per their share in the company. After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain. After the basis of a block of stock is reduced to zero, you must report the part of any later distribution for that block as a capital gain. It was getting a cash distribution from another company for last few years; 2003 onwards. You can report a capital loss only after you have received the final distribution in liquidation that results in the redemption or cancellation of the stock.
Liquidating distributions are reported on Schedule D, Capital Gains and Losses (Form 1040). Whether you are downsizing, liquidating a family member s estate or just need to part with a few things, we are available to help on liquidating. They may be paid in one or more installments... The company would send me a 1099 tax form filled only with Col-8 for Cash distribution / Liquidation on liquidating. You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9, in your case they were cash in box 8. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012%PDF-1. If the total liquidating distributions you receive are less than the basis of your stock, you may have a capital loss. Any liquidating distribution you receive is not taxable to you until you have recovered the basis of your stock. Please send an email with photographs to webuy@murrayshomeagain. ..