Leaderboard

I am at the CAB conference right now. Lots of information being shared. I can say that the leadership, old and new, TRULY have a new attitude about providing a working and dependable product for 20113. Stay tuned!!

My comment for improvement has to do with agency instructions. Pre-2012, you could right click on any line for any form and select instructions. Then a pdf of the IRS instructions would pop up and take you directly to the instruction for the line you clicked on. In 2012, you have to press F3 to get agency instructions. It takes you to the top of the instructions, then you have hunt through the whole instructions to find the line instruction you were looking for. This was a giant step backward. Thank you for listening to our suggestions.

Yes, it's time to replace. Win 7 is a very solid platform, you will not regret the change.

Check out this link to IRS manual for its auditors, specifically 4.11.7.5 Shareholder's Gain or Loss. If a series of payments are received, the basis is fully recovered first before reporting the gain, or if a loss then it is not allowed until the final amounts are received. In your case, you'd apply basis up to the amount distribution for 2012, and the remainder of the basis would be applied against the amount in 2013. Something was bugging me about the installment sale issue, so I looked a little further. It's still a cap gain transaction though. http://www.irs.gov/irm/part4/irm_04-011-007.html From Pub 550 - Liquidating Distributions Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. These distributions are, at least in part, one form of a return of capital. They may be paid in one or more installments. You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9. Any liquidating distribution you receive is not taxable to you until you have recovered the basis of your stock. After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain. Whether you report the gain as a long-term or short-term capital gain depends on how long you have held the stock. See Holding Period in chapter 4. Stock acquired at different times. If you acquired stock in the same corporation in more than one transaction, you own more than one block of stock in the corporation. If you receive distributions from the corporation in complete liquidation, you must divide the distribution among the blocks of stock you own in the following proportion: the number of shares in that block over the total number of shares you own. Divide distributions in partial liquidation among that part of the stock redeemed in the partial liquidation. After the basis of a block of stock is reduced to zero, you must report the part of any later distribution for that block as a capital gain. Distributions less than basis. If the total liquidating distributions you receive are less than the basis of your stock, you may have a capital loss. You can report a capital loss only after you have received the final distribution in liquidation that results in the redemption or cancellation of the stock. Whether you report the loss as a long-term or short-term capital loss depends on how long you held the stock. See Holding Period in chapter 4.

Cat, I think Michael is right, even tho Joan's answer is "logical", it's not right for a Liquidating distribution.

its a schedule D transaction offset by basis. Liquidating distributions isn't a sch B item