"In this regard, if the cash liquidation distribution is greater than your basis such that your basis is reduced to zero, then the excess cash liquidation distribution becomes a capital gain and is reported as such in TurboTax. Did you sell any part of your REIT in 2022?"
Yes. All of REIT sold in 2022. So yes it is a capital gain.
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Working from Turbo Tax Screens:
Did you get a brokerage statement? I got a 1099-DIV with both a 2a (Capital Gain Distribution) and Box 9 (cash liquidation distribution).
Which brokerage sent the form? I assume that “REIT_X” is a brokerage and enter that.
It is one sale. So I enter Sale #1
Description: Purchase + Dividend Reinvestments [Is that good enuf? I don’t have share numbers]
Date sold: May 20, 2022
Date acquired: Various. [But definitely long-term]
Sale amt: I have
Cost basis: I have memo from Investment Firm, not REIT.
Sales Category: Long Term noncovered (Cost basis not reported on 1099)
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Looking back at what I entered and my assumptions, kindly advise.
I believe that an Attachment about the Cost Basis will be necessary. Would I enter that somewhere in the form?
Thanks for your help.
