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I have a cash liquidation distribution. Nobody knows my cost basis except me. Do I put a lump sum gain on the capital gains sheet or fill out form 8949 and schedule D?

It's a stock liquidation. I have a gain but Fidelity and IRS do not know my cost basis. How do I list this on my taxes?
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Level 12

I have a cash liquidation distribution. Nobody knows my cost basis except me. Do I put a lump sum gain on the capital gains sheet or fill out form 8949 and schedule D?

Presumably you know your cost basis?

 

Cash liquidation distributions pretty much act like returns of capital: you reduce your basis on your own books and records.  As long as you still have basis there's no reporting required.  If a cash liquidation distribution exceeds your current basis then you report that as a sale using the "Stocks, Mutual Funds, Bonds, Other" interview and telling TurboTax you didn't get a 1099-B.

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Level 12

I have a cash liquidation distribution. Nobody knows my cost basis except me. Do I put a lump sum gain on the capital gains sheet or fill out form 8949 and schedule D?

Presumably you know your cost basis?

 

Cash liquidation distributions pretty much act like returns of capital: you reduce your basis on your own books and records.  As long as you still have basis there's no reporting required.  If a cash liquidation distribution exceeds your current basis then you report that as a sale using the "Stocks, Mutual Funds, Bonds, Other" interview and telling TurboTax you didn't get a 1099-B.

View solution in original post

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