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. Lodging includes the fair rental value of a room, apartment, or house in which the dependent lives, a reasonable allowance for the use of furniture and appliances, and all utilities. Long-Term Capital Gains and Losses Gains and losses on the sale or exchange of capital assets that have been held for more than 12 months. Lower of Cost or Market Method of Inventory Valuation Inventory valuation considering the actual cost or the replacement cost of merchandise on the inventory date.