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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 121144  
Subject: Re: 1099-DIV with only block 9 filled out Date: 2/24/2001 8:38 AM
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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?
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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.

--BigBunk
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