i received a 2019 1099 div, with box 9 reflecting cash liquidation of eg 100k
my "shareholder basis worksheet" reflects year end value of 60k
after deducting basis, i have 40k left as income; however, for 2018 i already paid capital gains tax on more than 1/3 of the 100k
do i now pay capital gains taxes on the remaining 20k, or on the full 40k?
is this income reported on sch B pt II, with nothing to report on forms 8960 or 4797?
You'll need to sign in or create an account to connect with an expert.
The income you paid tax on in 2018 (1/3 of the $100,000) would increase your tax basis, so that would reduce your taxable gain in 2019. So, you would pay tax on the $20,000 in 2019.
The liquidation of a partnership interest would be considered capital gain income, and as such it would be used to calculate net investment tax on form 8960. However, it would not be considered a sale of business assets, so form 4797 would not be involved.
The income you paid tax on in 2018 (1/3 of the $100,000) would increase your tax basis, so that would reduce your taxable gain in 2019. So, you would pay tax on the $20,000 in 2019.
The liquidation of a partnership interest would be considered capital gain income, and as such it would be used to calculate net investment tax on form 8960. However, it would not be considered a sale of business assets, so form 4797 would not be involved.
thank you for your kind reply
On behalf of ThomasM125, you're welcome!
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
emaven
Returning Member
btomal
New Member
KCD222
New Member
britishsteele
New Member
Pinevalleyite
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.