Box 10 on Form 1099-DIV contains Non-Cash Liquidation Distributions.
This indicates the assets (other than cash) that the taxpayer received when the entity they invested in was liquidated. These distributions reduce your basis in the investment.
Your basis in the investment determines how to report the amount listed in Box 10.
- If the amount listed in Box 10 is a return of your basis, it is not reported.
- If the amount listed is more than your basis, the excess is reported as capital gains.
- If the amount listed is less than your basis and you have received the final distribution in liquidation resulting in the redemption or cancellation of stock, report the difference as a capital loss.
Program Entry (Capital Gain or Loss)
- Income (select my forms)
- Capital gains and losses
- Capital Gains and Loss items