I am also figuring out how to handle the AABA cash liquidation scenario.
I got a 1099-DIV form from my brokerages. Sections 1-8, and 10-15 is all 0.00. Section 9,
Cash Liquidation Distributions, is the total amount of cash I received as part of the partial liquidation.
I know my cost basis from when I bought the stock (ESPP), so how and where do I enter in the profit I made?
Hypothetically, say I had 10 shares at a cost basis of $20, and was given $50 for the partial liquidation so far.
How do I enter in the $300 profit I made so far: 10 shares x $30 ($50-$20)
Do I pay the taxes now? Or do you have to wait to pay taxes after I get the full liquidation (1 or so years from now)?
