I have only 2 entries on a 1099-DIV form. They are from liquidation of a business and are shown on line 8 & 9. I have entered them in the 1099-DIV income section but they do not appear on the tax form or anywhere in the final return. I believe the amounts are taxable. I this a bug in the program?
This is not an error in the program - Boxes 8 and 9 of the1099-DIV are reporting that the assets of the fund were liquidated and returned to the investors.
The amount reported on a 1099-DIV represents the return of a shareholder’s investment. This return can be made in more than one distribution if a shareholder purchased blocks of stock over time, as opposed to making a one-time purchase. Until or unless a shareholder recovers her total investment, the amount reported on a 1099-DIV is not considered taxable income. This means that if the difference between the fair market value of the stock and its adjusted base – the price of the stock minus broker or commission fees – is zero, no tax is due on the amount.
This is not an error in the program - Boxes 8 and 9 of the1099-DIV are reporting that the assets of the fund were liquidated and returned to the investors.
The amount reported on a 1099-DIV represents the return of a shareholder’s investment. This return can be made in more than one distribution if a shareholder purchased blocks of stock over time, as opposed to making a one-time purchase. Until or unless a shareholder recovers her total investment, the amount reported on a 1099-DIV is not considered taxable income. This means that if the difference between the fair market value of the stock and its adjusted base – the price of the stock minus broker or commission fees – is zero, no tax is due on the amount.