Any gain or loss is not recognized until the property received in the exchange is sold or disposed of. Like-kind exchanges are reported on Form 8824. Like-Kind Property Business or investment properties that are the same type. The process of converting securities or other property into cash. The basis of the stock on which liquidation distributions are paid is reduced by the amount of the distributions.
Any amount received in excess of basis in the stock is taxable.
In a liquidation that results in cancellation of the stock, a loss can be claimed the year the final distribution is received if total distributions are less than the taxpayer's basis. Report liquidation distributions on Schedule D, Form 1040. Restrictions apply to the depreciation of listed property. Load The portion of the price of buying shares in a mutual fund that goes for the salesperson's fees and the costs of making the transaction and maintaining the fund. Lodging A portion of total support.