Jump to content
ATX Community

C Corp final year - 1099 dividend, box 9


LTKK301

Recommended Posts

The corporation filed a final year returns on 5/15/2019. What's the amount that needs to be issue to shareholder on form 1099 dividend, box 9 liquidation distribution? The 1120 tax return shows a $5,131 liquidation adjustments (cash dist) on M-2. The cash taken out to close the corp bank account was $10,131. The only three item on the balance sheet were

Cash 10,131

Common Stock 5,000

Retained Earnings 5,131

 

 

 

Link to comment
Share on other sites

The cash distribution of $10,131 would be on 1099-DIV in Box 9.  Assuming the shareholder's basis is the $5,000 of common stock, he would report a capital gain with $10,131 proceeds and $5,000 basis, paying tax on the gain of $5,131, representing the retained earnings that are taxed again to a C corporation shareholder.

  • Like 2
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...