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cash liquidation distribution

I received a cash liquidation distribution from a company that was liquidated, reported on line 9 of the 1099.  This amount is less than my cost basis.  Where do I report the loss?  I did not receive a 1099-B.

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1 Reply
DavidD66
Expert Alumni

cash liquidation distribution

A cash liquidation distribution reported in Box 9 of Form 1099-DIV should be reported as a capital gain (or loss) on Form 8949 and Schedule D. You need to enter it the same way you would if had been reported on a Form 1099-B.  Even though you don't have a 1099-B, type "1099B" in to Search  and hit enter:  

 

  • Click on "Jump to 1099b
  • Answer  Yes  to "Did you have investment income in 2022?"  
  • Click through the program until you get to "Let's import your tax info?", and click on "Enter a different way". 
  • Click to highlight the box with "Stocks, Bonds, Mutual Funds", then click on Continue.  
  • Enter something for "Bank or Brokerage" and click on Continue.  
  • Answer No to the Employee stock question.  
  • Continue through screens until you come to the page with Now, enter one sale on your Foreign 1099‑B 
  • Enter the information for your stock that was liquidated.  
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