Reporting liquidating

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recognizes no gain or loss on Block 2 (,000 – ,000 basis) and has a remaining basis of ,000 in Block 2.The 2008 distribution is allocated ,000 to Block 1 (10 ÷ 30 × 5,000) and ,000 to Block 2 (20 ÷ 30 × 5,000).Internal Revenue Service Form 1099-DIV, Dividends and Distributions, is a recordkeeping document that shows stock distributions received during the year.While corporations most often issue 1099-DIVs to report stock dividend distributions, it can also be used to report nondividend distributions, including money a corporation returns to an investor during the liquidation process.(I believe with the intent of liquidating it in 2017, but am not 100% sure.) This year's K-1 is Thanks for the detailed answer, Rick!A quick follow up to your point #1: If I have a reported 70k in capital gain from the K-1, and I initially bought the stake in the company for 20k, then is it correct to only report 50k in capital gain on schedule D?

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The amount reported on a 1099-DIV represents the return of a shareholder’s investment.Corporations can fold either by dissolution or complete liquidation.Dissolution is an “administrative” termination of the corporation and while it is a usual first step, it doesn’t necessarily mean the corporation is folding.Do me this is identical to if I bought 20k worth of publicly traded stock years ago, and then sold them for 70k today; I'd only be taxed on the 50k in capital gain.Or, if that's wrong, in what way is this different from a capital-gain and taxation point of view?

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