Liquidating distribution return of capital interracial dating attitudes

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Long-term capital gains apply if the holding period is at least one year and a day from the trade date.

Conversely, if an investor does not recover the total investment, she can report a capital loss.

This return can be made in more than one distribution if a shareholder purchased blocks of stock over time, as opposed to making a one-time purchase.

Until or unless a shareholder recovers her total investment, the amount reported on a 1099-DIV is not considered taxable income.

This means each shareholder must recognize a taxable gain (or loss) equal to the difference between the distribution amount and the shareholder’s basis in the stock relinquished in the liquidating transaction.

Last modified 18-May-2020 04:40