LIQUIDATION DISTRIBUTIONS
Liquidation distributions, reported on Form 1099-DIV, are distributed when a corporation in which you own stock is going through a partial or complete liquidation. They may be received in the form of cash or noncash. An amount designated as a cash or noncash distribution is often not taxable, but is a reduction of your basis in the stock.
So when you dispose of the stock, your basis for figuring gain or loss is reduced by the amount in this box. (It will result in a larger gain or a smaller loss when you dispose of the stock.)
However, if the basis of your stock is already zero, or is less than the amount shown in this box, the amount is taxable and you need to report the amount that exceeds the basis in your stock as either a long-term or a short-term capital gain.
If this liquidation is a final distribution from the company, you need to report a sale of the stock on Schedule D.
in other words there is no auto transfer to form 8949
did you also get a 1099-B that may have reported the same amount?
anyway you treat the amount as a sale of a stock. the only question is cost basis ti use.
if final distribution you would report gain or loss depending on your tax basis. if a partial distribution you would use the lesser of your remaining tax basis or the amount of the distribution
not sure what version of TT you are using. some don't support the reporting of capital gains
if not you'll have to upgrade
otherwise
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on (if shown)
Under Investment Income
On Stocks, Mutual Funds, Bonds, Other, click the start or update button
