GPEARCE
Level 1
05-02-2021
08:23 PM
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If taxpayer invested $20,000 five years ago in a REIT and does not know the current basis of his account, how can basis be figured ?
Is a non cash liquidation in a REIT taxable?
Is a non cash liquidation in a REIT taxable?
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sjrcpa
Level 15
05-03-2021
08:21 AM
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It's taxable to the extent it exceeds basis.
The more I know the more I don’t know.
sjrcpa
Level 15
05-03-2021
08:23 AM
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To compute basis, start with the $20K purchase price. Subtract all of the nondividend distributions received since then. Look at past 1099s.
The more I know the more I don’t know.
R Taylor
Level 1
05-03-2021
08:38 AM
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We have some of these this year too. We have found that most REITS have a gain calculator on their website. You need the original date, how much was invested and if the distributions were set to reinvest or not.
Here is an example from the Black Creek Group.
BobKamman
Level 15
05-03-2021
10:48 AM
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The IRS answer would be: Just assume basis is zero.
When told that, most taxpayers are able to come up with something more accurate.
