Q. Does that mean the 2nd liquidation amount from 2020 and any future distribution would all be capital gains with a basis of zero, right?
A. Yes.
@Tauepsilon1920 said "My AABA cost basis is more than the first liquidation distribution amount in 2019. I didn’t know, but I already entered that basis in last year’s return and claimed it as a loss.
You don't usually claim losses from a liquidating distribution. It's either a reduction in your cost basis or a capital gain (after the basis has been reduced to zero).
