Partial Liquidation & proceeds from settlement

[Ryndam]

Owned a shares in a small company that is being liquidated. Received a 1099-B for a mere fraction of what I invested. I assume liquidating distributions are considered return on capital and as a result I don't have to enter on my return?

In another company, I received $20 due to a Securities Settlement Fund. When a company gets sued by shareholders or the SEC and there is a payout, is it taxable? I just got a check for the $20 but no form saying it was reported to the IRS.

[ChEAr$]

one out of two

Owned a shares in a small company that is being liquidated. Received a 1099-B for a mere fraction of what I invested. I assume liquidating distributions are considered return on capital and as a result I don't have to enter on my return?

all proceeds from any 1099-B are reported on your return, most probably on schedule d.
And you will have gain or loss, depending.


In another company, I received $20 due to a Securities Settlement Fund. When a company gets sued by shareholders or the SEC and there is a payout, is it taxable? I just got a check for the $20 but no form saying it was reported to the IRS.

Sorry, no answer for this one, but I would suggest you err on the side of caution here,
and report the 20$ on line 21 of your 1040.

BTW, I sailed on a ship with your name on it last year. Ship is owned by
Holland America, one of the very best lines in the world.

[ChEAr$]

one out of two

Owned a shares in a small company that is being liquidated. Received a 1099-B for a mere fraction of what I invested. I assume liquidating distributions are considered return on capital and as a result I don't have to enter on my return?


In another company, I received $20 due to a Securities Settlement Fund. When a company gets sued by shareholders or the SEC and there is a payout, is it taxable? I just got a check for the $20 but no form saying it was reported to the IRS.

On the first questions, all proceeds from any 1099-B are reported on your return, most probably on schedule d.
And you will have gain or loss, depending.

Now, for the second one:
Sorry, no answer for this one, but I would suggest you err on the side of caution here,
and report the 20$ on line 21 of your 1040.

BTW, I sailed on a ship with your name on it last year. Ship is owned by
Holland America, one of the very best lines in the world.