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April 9, 2024
Question

I have a 1099 DIV with entry in 9 Cash Liquidation. Where exactly do I put the number in using the wages and Income screen?

  • April 9, 2024
  • 1 reply
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    1 reply

    DawnC
    April 9, 2024

    When you enter the 1099-DIV, you need to mark the box that says My form has info in more than just these boxes.   When you do that, you will see box 9.  

     

     

    When a corporation, bank, or credit union undergoes a partial or complete liquidation, you may get a cash or noncash liquidation distribution.  An amount designated as a cash or noncash distribution is often not taxable, but instead reduces your basis in the stock you own.  If a cancellation of stock occurs from a liquidation, a loss can be claimed the year the final distribution is received if total distributions are less than the basis.

     

    When you sell the stock, your cost basis for figuring gain or loss is reduced by any distributions you received.  

     

    However, in the following cases the distribution is taxable and you need to report the distribution as a liquidation sale in the Investment Income section of TurboTax:


    - Your cost basis in the stock is zero.
    - Your cost basis is less than the distribution amount.
    - This liquidation is a final distribution from the company.
     

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