PatriciaV
Expert Alumni

Business & farm

Champ @Rick19744 is correct - the gain or loss on liquidating distributions is not reported at the corporate level. Distributions in excess of basis is income to the shareholders and reported on Form 1099-DIV.

 

However, distributions up to the capital basis of a shareholder are Return of Capital. The difference between the shareholder's basis and distributions received at the time of liquidation is reported on the shareholders return as an investment loss.

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