Stock - no 1099B information, however, company was liquidated - how to file?

[waynecoo]

Hello,

I owned a stock whose assets were liquidated, of which proceeds were a significant percent of my cost basis.  There was no 1099B information, and my brokerage company said I need to handle this on my own on my taxes.  I have a brokerage statement showing my acquisition details, along with 1099's and statements showing the liquidation proceeds.  Liquidation proceeds were distributed on two separate dates.

How is the best way to enter this? 

(A) Do I enter a stock sale that is not listed on 1099B, and in sale proceeds section, sum up the liquidation proceeds and list the latest distribution date? 

(B) Do I list $0 in sale proceeds, and check off the box "An adjustment is required for a reason not already covered"? and enter in the sum of liquidation proceeds?

(C) Some other way?

Thank you!

[PattiF]

Yes, you would enter this as a stock sale that is not listed on a Schedule-B, and select if it is short-term or long-term. You can list the total proceeds and use the last date for the distribution for both, and then enter the date of purchase and the price that was paid for the stocks (cost basis).

"An adjustment is required for a reason not already covered" would be used if there was a 1099-B with information that needed to be adjusted. 

[waynecoo]

Much appreciated! Thank you. Hopefully this doesn’t increase risk of an audit?

[PattiF]

No, the IRS will recognize the stock name that was liquidated. No red flags will be raised.

@waynecoo 

[waynecoo]

Thank you so much!!!