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Brad, Retired IRS Agent
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Experience:  Retired; 32 years service and expertise in Individual, Partnership, Trust, Corporate Tax Law;Mensa
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how to I report the gain on a REIT that liquidated in ...

Resolved Question:

how to I report the gain on a REIT that liquidated in 2007? I recieved 1099-div with liquidation distribution in box 8 that is more than my initial cost basis . I am assuming I need to report it as capital gain but don''t know how to do it - can you help?
Submitted: 6 years ago.
Category: Tax
Expert:  Brad replied 6 years ago.

HelloCustomer

A capital gain dividend is treated by the shareholders that receive it as a gain

from the sale or exchange of a capital asset.

This is discussed in the IRS Bulletin 2004-22 on page 982 if you wish to review it at the website below.

Your gain would be the excess of your distribution over your cost basis. You can report it on Schedule D. The key is to determine whether the REIT was held long-term or short-term. Short term REIT's are held one year or less. Below you will find a downloadable Schedule D where you can enter the distribution, cost basis, and gain in the section for short-term gains or the section for long-term gains.

http://www.irs.gov/pub/irs-pdf/f1040sd.pdf

http://www.irs.gov/pub/irs-irbs/irb04-22.pdf (Page 982)

Please contact us again whenever you need help.

Balanor

______________
IRS CIRCULAR 230 NOTICE: Absent an engagement for written tax advice prepared in compliance with the regulations promulgated by the U.S. Department of Treasury, no person prepared the written information contained in or accompanying this communication for use or reliance, and no taxpayer can, therefore, use or rely upon the written information contained in or accompanying this communication, (i) to avoid any penalties that the IRS may impose, or (ii) for the purpose of promoting, marketing, or recommending to another party any tax-related matters.
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Brad, Retired IRS Agent
Category: Tax
Satisfied Customers: 177
Experience: Retired; 32 years service and expertise in Individual, Partnership, Trust, Corporate Tax Law;Mensa
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Retired; 32 years service and expertise in Individual, Partnership, Trust, Corporate Tax Law;Mensa