LTKK301 Posted January 28, 2020 Report Share Posted January 28, 2020 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 Quote Link to comment Share on other sites More sharing options...
EricF Posted January 28, 2020 Report Share Posted January 28, 2020 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. 2 Quote Link to comment Share on other sites More sharing options...
LTKK301 Posted January 29, 2020 Author Report Share Posted January 29, 2020 thank you Eric Quote Link to comment Share on other sites More sharing options...
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