Capital Gains for cash liquidation distributions box 9 1099-DIV

Forum|Forum|5 years ago
February 6, 2021
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I am reporting cash liquidation distributions as an "Other" investment sale. This liquidating dividend was reported in box 9 of Form 1099-DIV. A previous cash liquidation distribution was made when partial stock shares were redeemed. However this distribution does not involve a stock redemption. TurboTax is asking for two dates, "When did you receive this investment?" and "Date sold or disposed". I assume the date the investment was received is the date of the original stock purchase for the shares still held. The only other date I have is the date the check was issued for this liquidating dividend, is that the date I should use for "Date sold or disposed"?

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ThomasM125

You are correct in your assumptions. The reason for these questions is to determine if the capital gain or loss is long term (held for more than one year) or short term (held for less than one year), as the applicable income tax rate may vary depending on whether it was held for more or less than one year.

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choukit

how do I handle cash liquidation distribution box 9 in 1099 Div statement? Thanks!

DaveF1006

Are you having difficulties in finding Box 9 in the 1099-DIV? If so:

Federal>income and expenses
Interest and Dividends>1099 DIV
When you begin recording your information in the form, be sure to check the box that says My form has info in other boxes (this is uncommon).
The boxes will expand in the form and this is where you will record the cash liquidation distribution in Box 9.

@choubit

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