Form 1099-B - Return of Principal Return of Capital. ... However, if the return of capital or principal is more than your basis, then you will need to report a capital gain equal to the amount received in excess of your basis. If you originally paid $1 per share and each share is worth $5.33 per share, then you would need to report this as a capital gains. Here is how this would work.
if you have 100 shares. if you originally paid $1 per share, your basis is $1 X 100=$100 Now your 100 shares are worth $533 ($5.33 X 100).
Your capital gains now is $433 ($533-100), which needs to be reported.
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