dating mamber ru - Liquidating distribution cash proceeds taxed

1.       Don't combine the amounts from 2 or more 1099-DIV forms if they're from the same payer.

Instead, enter additional 1099-DIVs individually by answering  Yes to  Do you have any more dividend income from somewhere else which appears a few screens down the road.

If the stock surrendered in the liquidation qualifies as Sec. Thus, accumulated earnings and profits (AE&P) or accumulated adjustments accounts (AAA) are not relevant to the characterization of the liquidating distribution.

1244 stock, the shareholder may be able to claim an ordinary loss rather than a capital loss. Since the existence of AE&P has no impact on the characterization of a liquidating distribution, an S corporation with AE&P should identify liquidating distributions as such (for example, in a board of directors resolution adopting the plan of complete liquidation).

For example, if your cost basis in stock in a company is $1,000 and the company is totally liquidated, then if you receive a 1099-DIV with Box 8 showing $400 and you received nothing else from the liquidation, then you would report the stock as a sale on the stock sale screen and report $400 as the sales price and $1,000 as the cost basis in the stock that was completely liquidated. Let me know if this helps and I'll add it to the answer.

For example, if your cost basis in stock in a company is $1,000 and the company is totally liquidated, then if you receive a 1099-DIV with Box 8 showing $400 and you received nothing else from the liquidation, then you would report the stock as a sale on the stock sale screen and report $400 as the sales price and $1,000 as the cost basis in the stock that was completely liquidated. I understand how to report my gain on Schedule D for the cash liquidation distribution.

Did you receive something non-cash that you can remember? I'm waiting for response from the accountant as to what that non-cash amount is for.

I don't have a closing or year-end statement from the corp.-estate for 2016 yet. People come to Turbo Tax Answer Xchange for help and answers—we want to let them know that we're here to listen and share our knowledge.

There's a tiny box that needs to be checked on the 1099-DIV screen. Click to enlarge.)First, how to get there; then a little info below on why Box 8 and 9 is usually not taxable. Don't combine the amounts from 2 or more 1099-DIV forms if they're from the same payer.

Instead, enter additional 1099-DIVs individually by answering Yes to Do you have any more dividend income from somewhere else which appears a few screens down the road.

Distributions in complete liquidation of an S corporation are treated as payments in exchange for the shareholder’s surrendered stock (Sec. In addition, during the liquidation of an S corporation, it may be difficult to predict the ending balance of AAA.

This may in turn make it difficult to accurately determine the AAA available for ordinary distributions and makes inadvertent dividend distributions from AE&P more likely to occur.

You can enter it as "Other" and indicate it was "inherited".

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