Cash Liquidation distributions and 1099DIV

[cientax]

Have 1099 DIV with Cash liquidation distributions in box 8 of $1220 and Noncash liquidation distributions of $11 in box 9. I am not using ATX this year, I made the !@#$%^&*()_ to use TRX Alliance TaxWise this year and I am unable to find where to enter these amounts on the tax return. I am unable to pull up a 1099 DIV on TRX Taxwise.

Any help would be greatly appreaciated.

[JRS]

You will have to determine if there is any basis, then you can follow the statement I found below. If your client is like many of mine, finding basis can be really FUN.

Q: Are "cash liquidation distributions) as shown on a 1099-DIV (box 8) taxable income?

A: Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. These distributions are one form of a return of capital. You will receive a Form 1099-DIV from the corporation showing the amount of the liquidating distribution in box 8 or 9. Partial liquidating distributions are not taxable income as long as you still have a cost basis in your original investment, they are used to reduce that basis. If and when distributions exceeds your cost basis, the excess is a capital gain. If, when the distributions are ended and the corporation has been completely liquidated, the distributions were less than your basis, the difference is a capital loss.