Received small payout from defunct fund without any reporting form

In 2020 I received a distribution check from a previously liquidated long-term real estate investment fund. The fund was liquidated several years ago, but additional funds were recovered. There was no form included with the check, as the distributing organization said they didn't provide forms for under $600. Does this need to be reported to the IRS, and if so, how? Is there a form?

947

Alumni

Apr 22, 2021 9:31:55 AM

Death-n-taxes,

You are legally required to report it as capital gain income. I've had at least a dozen such situations over the years as sundry stockholder lawsuits reached a settlement. Put in the amount you received as the sales price. Put in $0 for the cost basis. Mark the transaction as Various Long Term, Basis not Reported to the IRS.

Level 2

Apr 24, 2021 1:32:51 PM

Thanks so much! I appreciate you sharing your experience.

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Received small payout from defunct fund without any reporting form