How to handle altabba(AABA) cash distribution in turbo tax?

Forum|Forum|6 years ago
February 6, 2020
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DavidD66

If you owned shares of Altaba (AABA) you would have received a liquidating distribution. This should have been reported to you on a Form 1099-B by the broker where you held the stock. It would be reported the same as a stock sale. If you did not hold it with a broker dealer, you will still need to report it as the "sale" of an asset.

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tle461819lrAuthor

This was not a stock sale; It was a cash liquidation distribution and was reported on a 1099-DIV. I still own the stock and there maybe another cash distribution in 2021. The distribution was more than I paid for the original stock (12 years ago) so I have a long term capital gain but can't figure out how to report this in Turbo. The 1099-DIV cash distribution needs to be reduced by the amount I paid for the stock. Where do I report the deduction?

ThomasM125

You need to report the 1099-DIV where you report dividend income in TurboTax. Can you tell us what boxes have numbers in them on the form please?

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tremorchrist

Reading various posts on this forums about stock liquidation and AABA, I've figured out how I should report them to IRS. I've both RSUs and stock obtained thru ESPP. Reporting RSUs is straightforward -- I know my vesting dates, and so I've been able to find the FMV on those dates for cost basis. I also figured out my cost basis for ESPP, and what the 'bargain' factor is. The only trouble I'm having right now is that TurboTax isn't allowing me to enter that bargain factor without a W2, either from Yahoo!/Verizon or Altaba, because that amount is well over $2k. I contacted Verizon and they said Altaba should issue the W2. I guess that makes sense because it's AABA after all that I held and got liquidated. I contacted Altaba Inc. via email a couple of days ago but have yet to hear back. If they don't respond, or say they don't/won't provide a W2, I'm not sure what to do here.

So:

- Is one required to report the bargain element of ESPP? I think yes, even if it's a (partial) liquidation and not a sale.

- Can it be reported without a W2? TurboTax says no, at least when it's above $2k.

- If a W2 is required, has anyone got one from Altaba?

All I need is a W2 and then I'm thru!

-TC

Tauepsilon1920

My AABA cost basis is more than the first liquidation distribution amount in 2019. I didn’t know, but I already entered that basis in last year’s return and claimed it as a loss.

Does that mean the 2nd liquidation amount from 2020 and any future distribution would all be capital gains with a basis of zero, right?

thanks

Hal_Al

Employee

Q. Does that mean the 2nd liquidation amount from 2020 and any future distribution would all be capital gains with a basis of zero, right?

A. Yes.

@Tauepsilon1920 said "My AABA cost basis is more than the first liquidation distribution amount in 2019. I didn’t know, but I already entered that basis in last year’s return and claimed it as a loss.

You don't usually claim losses from a liquidating distribution. It's either a reduction in your cost basis or a capital gain (after the basis has been reduced to zero).

Tauepsilon1920

Thank you for the response. Where do I go in TurboTax to enter the zero basis? It tells me to go to the investment section under wages & income section, but I still couldn’t find where I can enter that info