liquidating distribution reported on 1099Div

[schirallicpa]

Always see some small amounts here and there as liquidating.  This on totals about 92K.  So i get a warning that i may need to report on Sch D.

 

Client is older than dirt and investments are handled by a trustee, i think. 

 

On the one hand it makes sense that it may be reportable on Sch D.  On the other hand - wouldn't i have gotten a 1099B?

 

[OldJack]

1099B is a sale of stock.  This is a company 1099-DIV, box 8 or box 9 liquidation distribution (see box instructions).  You should report on 1040 Sch-D with his cost basis as an offset.

[OldJack]

Publication 550: Liquidating Distributions

>>Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. These distributions are, at least in part, one form of a return of capital. They may be paid in one or more installments. You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9.

Any liquidating distribution you receive is not taxable to you until you have recovered the basis of your stock. After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain. Whether you report the gain as a long-term or short-term capital gain depends on how long you have held the stock.<<

[schirallicpa]

can i whine now - or just file extension.  No one will have this info easily................ :scratch_head:

[schirallicpa]

Funny how i knew someone was going to tell me what i already was pretending not to know. :pop:

[schirallicpa]

thank you "old Jack"