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Get your taxes done using TurboTax
The cash liquidation distribution represents a return of your capital. In many cases, it is not taxable. Check your cost basis in the asset.
A zero as the cost basis would mean that the full amount of the distribution should be taxed as a capital gain.
If you have a cost basis, adjust the cost basis by the amount of the return of capital.
See also here.
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‎April 15, 2025
8:34 AM