Thans a lot for your reply. Yes, you are right. I lost $2030. I don't have any other stock in the transaction. I got $5150 from cash liquidation distribution, not from sale. Since my broker assumed that the original cost was $1359 (which was the value when I transferred AABA to the current broker; the actual cost was $7850 when I purchased), they list the difference of $5150 and $1359 as total proceed in Box 1d, and brought the cost basis to $0, in the 1099B. There is a note on the 1099B, which says "Return of capital or liquidation distributions have reduced the cost basis of this stock to zero. When the basis of your stock has been reduced to zero, you must report the additional return of capital or liquidation distributions as capital gains."
