TaxGuyBill
Level 15

@TedEspey wrote:

Where do I report the liquidating cash dividend on the final Form 1120S? If I report on Schedule K line 16d, then that doubles up the amount reported on the Form 1099Div.


 

I understand what you are thinking, but it isn't really doubling anything except double-letting the IRS know about it.

Line 16d is just informational for purposes of the shareholder to calculate Basis.  It doesn't really 'do' anything.

I could be wrong, but I think the 1099-DIV just alerts the IRS that a 'sale' was made and needs to be reported on form 8949/Schedule D.

Just don't double-reduce the Basis (don't reduce it by both the Line 16d and the 1099-DIV).

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