I have received a 1099-Div for a complete liquidation with an amount in box 10, non cash liquidation distribution. I have a stock basis that is higher than the value of the units received in the liquidation. How do I report this?

[tagteam]

The program should handle this for you but it is generally capital gain (short or long term depending upon your holding period).

See https://www.irs.gov/publications/p550#en_US_2019_publink100010093

[ggetto]

Thank you.

I don't know if my previous reply was sent. According to the IRS publication, losses are allowed if it is a complete liquidation. Do you know if this is your interpretation? Also, I entered the 1099-div and it stated that the transaction will handled later but nothing seems to have been done automatically. I may have to enter it as a Schedule D - 8949 transaction?

Thanks again

[tagteam · Accepted solution]

Yes, and you need to go to the right section in the program and read the On Demand Tax Guidance.

[ggetto]

Thank you.

I don't know if my previous reply was sent. According to the IRS publication, losses are allowed if it is a complete liquidation. Do you know if this is your interpretation? Also, I entered the 1099-div and it stated that the transaction will handled later but nothing seems to have been done automatically. I may have to enter it as a Schedule D - 8949 transaction?

Thanks again

[tagteam]

Did you see the earlier post? Yes, you have to enter the transaction in the Investment Income section.

@ggetto 

[ggetto]

Thank you for your help, I have not used the on demand tax situation before.