Complete Liquidation of C Corporation

Technical topics regarding tax preparation.
#1
ICOUNT  
Posts:
82
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2-May-2014 7:34am
Location:
wisconsin
Is a 1099 Div required on the complete liquidation of C corporation in one year? Example-10000 cash pd to shareholder with a 5000 capital stock basis, in complete liquidation. Is a 1099 div required---if yes- in the liquidating dividend box should the amount be 10000 or just 5000 the taxable portion? I believe that since it is completely liquidated in one year no 1099 Div has to be issued and the liquidation would be reported on Schedule D. Am I correct I can't find the answer
thanks
 

#2
lckent  
Posts:
603
Joined:
21-Apr-2014 8:19pm
Location:
Colorado
Yes, 1099-Div, Box 9. Should be the full amount of the liquidating distribution. Will be reported on shareholder Schedule D.
CPA, Retired
 


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