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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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)
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.
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