Cash basis liquidating distributions is val kilmer dating anyone
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.When the total amount of cash distributed is more than a partner's basis in her partnership interest, the difference in the two amounts is a gain.A loss results when the liquidating distribution is less than the partner's basis in the partnership.Internal Revenue Service Form 1099-DIV, Dividends and Distributions, is a recordkeeping document that shows stock distributions received during the year.While corporations most often issue 1099-DIVs to report stock dividend distributions, it can also be used to report nondividend distributions, including money a corporation returns to an investor during the liquidation process.
Provided the liquidation terminates your entire interest in the partnership, your tax basis in the distributed property is equal to your adjusted basis in the partnership interest minus the cash distributed to you.
Whether the amount qualifies for short or long-term capital gains depends on the trade date – the purchase date -- of the sale.
For tax purposes, the holding period begins on the day after the trade date.
Section 331(a) of the IRS tax code says that if a shareholder is eligible to receive a cash liquidation distribution totaling 0 or more, the distribution must be reported on Form 1099-DIV.
The amount reported on a 1099-DIV represents the return of a shareholder’s investment.