Form 1099-DIV amounts in box 8 & 9 - where to report?
Does the reporting of the amounts in box 8 & 9 apply to Form 1040 Schedule D?
(I may be answering my own question below but want to get others (opinions) who may have reported information as it applies to Form 1099-DIV amounts in box 8 & 9).
Scenario: Client receives a Form 1099-DIV amounts in box 8 & 9 as a shareholder in a corporation that was acquired in a merger. In a letter from the client’s financial planner (CFP) stated that the merger is taxable for US federal income tax purposes as a long term capital gain.
A review of IRS pub 550 page 21 “LIQUIDATING DISTRIBUTIONS” & top of page 22 "....any liquidation you receive is not taxable to you until you have recovered the basis of your stock. After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain..."
So I think the amount received less the basis (Cost) of client’s stock would be reported on Schedule D.
Thanks in advance for your reply
Does the reporting of the amounts in box 8 & 9 apply to Form 1040 Schedule D?
(I may be answering my own question below but want to get others (opinions) who may have reported information as it applies to Form 1099-DIV amounts in box 8 & 9).
Scenario: Client receives a Form 1099-DIV amounts in box 8 & 9 as a shareholder in a corporation that was acquired in a merger. In a letter from the client’s financial planner (CFP) stated that the merger is taxable for US federal income tax purposes as a long term capital gain.
A review of IRS pub 550 page 21 “LIQUIDATING DISTRIBUTIONS” & top of page 22 "....any liquidation you receive is not taxable to you until you have recovered the basis of your stock. After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain..."
So I think the amount received less the basis (Cost) of client’s stock would be reported on Schedule D.
Thanks in advance for your reply
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