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Irg
Returning Member

1099-Div liquidation dividend

I received a check for 15,000. With a 1099- Div liquidation 

I was a member of an insurance company they shut down and liquidated. I was told it is a ordinary long term capital with 0 basis. I entered the I formation on 1099 Div. Entered box 9 amt. Liquidation. But I don't know where to enter it on  sch.d. I'm lost.

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2 Replies

1099-Div liquidation dividend

since line 9 on the 1099-DIV goes nowhere


If the basis of your stock is already zero, the amount is taxable and you need to report the amount that exceeds the basis in your stock as either a long-term or a short-term capital gain. you need to report a sale of the stock on Schedule D.

Turbotax

in the investment income section

stocks bonds etc

list the name of the Company

date you became a member as date acquired

date you got the proceeds as date sold

sale price = box 9 on 1099-DIV

cost =0

type would either be C (if held short-term) or F(if held long-term) 

GeorgeM777
Expert Alumni

1099-Div liquidation dividend

Do you know whether the cost basis for this liquidating distribution was reported to the IRS?  If it was not, and it may not have been, then when you entered your information into TurboTax, if you indicated that you did not receive a 1099-B, then the only option for long-term sales is box F. Box F on Form 8949 is reserved for long-term transactions not reported to the IRS.  Schedule D reports transactions that were reported to the IRS. Thus, your liquidation dividend will not appear on Schedule D.  Rather it will appear on Form 8949 in the section reserved for sales of long-term transactions.

 

@Irg 

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