Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: BigBunkler Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123153  
Subject: Re: 1099-DIV with only block 9 filled out Date: 2/24/2001 8:38 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 7
I received a 1099-DIV with only block 9 filled out. What are they trying to tell me? I was gifted stock in the company in the Payee block. The company later decided to sell some of its holdings and gave me stock in another company. I traded in the old stock and received stock for the other company. I have not sold any stock. Is it possible that the 1099-DIV that I got is just a way for them to show the paper trail to the IRS? Do I keep it to show the cost basis of the new stock when I sell it?
=== === ===
Here is the situation. Box 9 of 1099-DIV is labeled "Noncash liquidation distribution." Liquidating distributions are distributions made to shareholders when a corporation goes out of business. Generally you will put this amount on Schedule D, either long-term or short-term depending on how long you owned stock in the liquidated corporation. You will recognize a gain or loss equal to the difference between the amount of the liquidating dividend and the cost basis in the stock.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Saul's Investing Discussions

Skyworks Mid-Quarter Review
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.