The 1099 DIV is issued from stock that you own. You will enter the liquidating distribution in the return as if it is a stock sale. Any amount of the liquidating dividend that is in excess of your original investment will be treated as a capital gain.
You will enter the liquidation as if you were entering a 1099-B.
- Go to Wages & Income
- Scroll to Investments and Savings
- Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Time to kick off your investments! = Okay
- Time to kick off your investments! = Continue
- Let's import your tax info = Enter a different way
- There are five boxes available
- Interest
- Dividends
- Stocks, Bonds, Mutual Funds
- Cryptocurrency
- Other
- You will select Stocks, Bonds, Mutual Funds
- You will then go through an interview process to describe the sale.
You will have to have information about
- How you acquired the asset. (Purchased, gift, etc.)
- Is it Long/Short term
- It was not reported to IRS
- The basis of your stock (this is your original investment)
- Date of sale
- Proceeds (Liquidation amount).
- Purchase date
- Purchase price
@lachance98
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