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Tax on liquidating dividend

After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain.

Every year it would get money, it would deduct 44% State and Federal taxes and give 56% to share holders per their share in the company. Ricky - Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation.

Divide distributions in partial liquidation among that part of the stock that is redeemed in the partial liquidation.

After the basis of a block of stock is reduced to zero, you must report the part of any later distribution for that block as a capital gain.

The anomaly is corporate dissolution without liquidation.