Discussion:Return of capital results in negative basis
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> Return of capital results in negative basis
Discussion Forum Index --> Tax Questions --> Return of capital results in negative basis
| 7 April 2009 | |
| Client has stock he bought a few years ago for $6 - recently got a $10 per share nontaxable return of capital distribution. I assume it is a long term gain of $4 per share reported just like a sale on Sch D - basis 6, proceeds 10, zero basis going forward. Is that correct? Reported gross proceeds won't match but no one ever got quesrtioned because the reported gross proceeds exceeded the 1099B reports right? | |
Laketahoecpa (talk|edits) said: | 7 April 2009 |
| You are correct. | |
| 7 April 2009 | |
| except in termonolgy
"return of capital in excess of basis" would be correct, as there is no such thing as negative basis | |
To join in on this discussion, you must first
log in.
