Question

cash liquidation for a S corporation

Forum|Forum|6 years ago
May 29, 2020
3 replies
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My S Corporation was liquidated and I received a 1099-DIV showing the liquidation amount. I have read several of the discussions that I need to manually enter my capital gain on Schedule D indicating that I did not receive a 1099-B. I am currently trying to figure out my cost basis and have read that I can add ordinary income, dividends, LT capital gains, etc. as well as subtract distributions, etc. (as shown on my K-1s). I am wondering about Unrecaptured Section 1250, box 8C. I have an amount of $11,044.00. Does this affect my cost basis one way or another?

B

bobotax2020

Yep....read this irs page

A

Anonymous

1250 gain is included on line 8a so it does not add to basis

B

bobotax2020

That's not true.....if the whole gain is 1250 gain then none of it will be on line 8a

A

Anonymous

sorry 1250 gain is part of 1231 gain on line 9

you can test this by just entering an amount for 1250 but not 1231 and see if your taxes change if they do not enter the 1231 amount. taxes should change unless you had a capital loss in excess of the 1231 gain.