If a cashout distribution upon corporate liquidation is listed in box 11 1099-div, how is this taxed?

I sold my insurance agency and received a cash distribution upon liquidation of the corporation which I had owned. How is this taxed?

posted

Box 11 on a form 1099-DIV is labeled "Exempt-interest dividends", so I'm not sure how that applies to your situation.

The distribution that you mention would seem to be from a situation where the company went out of business and sent you a check from proceeds of its liquidation. If so, you would report that as an investment sale and report the distribution as the sale proceeds and the cost would be your adjusted basis in the stock you owned.

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