A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate.
Like mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investment, with out having to buy, manage, or finance any properties themselves. If held long-term, REIT's growth reflects the appreciation of the property it owns.
For Box 9: Liquidating distributions are distributions you receive during a partial or complete liquidation of a corporation.
These distributions are considered a return of capital.
Liquidating distributions are not taxable to you until you have recovered the basis of your stock.
After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain.
Whether you report the gain as a long-term or short-term capital gain depends on how long you have held the stock.
If the liquidating distribution shown in Box 8 or 9 is a complete liquidation, then report the amount in Box 9, on the stock sale screen as a stock sale.
You will report it in the Investment Income section under Stocks, Mutual Funds, Bonds and Other.
You need to enter the information in the section for Stocks, Mutual Funds, Bonds, Other.
The first screen asks is you sold Stock, Mutual Funds, Bonds, or you click on Other.
Here you want to click on Other, since you did not receive a 1099-B for this sale. Then you can add the information you have about the sale.
Choose "Stock" if it asks you what type of investment you sold.
Click here for a Guide to Schedule D Capital Gains and Losses.
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