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?

[herlins824]

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?

[TomYoung · Accepted solution]

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.

[lewleib]

Tom. I have a related problem..  My TurboTax Smart Check came up with an "error": Schedule B -- Form 1099-DIV: PVT act bond int amount should be less than or equal to Box 10($0.00) amount on 1099.

The Box 10 is Noncash liquidation distributions and is 0.0.  The line 12 is a positive amount.  How can this be fixed?

Thanks 

Lew L.

[RobertB4444]

@lewleib  You need to delete the zero in box 10.  Box 10 should be blank.