Taxation of liquidating dividends marc nelson paula dating
citizen with dividend income from sources outside the United States (foreign-source income), you must report that income on your tax return unless it is exempt by U. This chapter also explains how to report dividend income on your tax return.
This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer.
After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain.
Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund.
The company would send me a 1099 tax form filled "only" with Col-8 for Cash distribution / Liquidation. These distributions are, at least in part, one form of a return of capital. You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9, in your case they were cash in box 8.
Any liquidating distribution you receive is not taxable to you until you have recovered the basis of your stock.
Dear Kathy: I had purchased Incentive Stock Options back in 2000. It was getting a cash distribution from another company for last few years; 2003 onwards.
Every year it would get money, it would deduct 44% State and Federal taxes and give 56% to share holders per their share in the company. Ricky - Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation.