Condor Hospitality: how to figure taxes

[guyshomenet1]

Condor Hospitality (CDOR was their stock symbol) folded in 2021.

The stock was delisted (going to $0) and the company sent a dividend check to all shareholders.

Fidelity (my broker) has yet to provide details in their annual "sorry, but your tax statements will be late" message.

In this situation, how will the dividend be handled as it was a one-time event. I'm assuming (but accept corrections) that:

a) I take a write-off on the stock as a "complete loss"

b) Pay taxes on the dividend, but will if be an "ordinary" dividend and taxed more long a long-term capital gain, or will it be a different kind of dividend classification and taxed differently?

[MaryK4]

Yes, you can deduct worthless stock in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets.  Enter a worthless stock like any stock sale but with a sales price of zero and the word worthless in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.

However. if it was a liquidating dividend, which is a type of payment that a corporation makes to its shareholders during a partial or full liquidation, the distribution is made from the company's capital base. As a return of capital, this distribution is typically not taxable for shareholders, but would have to be subtracted from your cost basis when you report the worthless stock. 

If you are not sure, you may want to wait for the broker statement.