Home › Fairmark Forum › Taxation of Investments › Does a “cash liquidation distribution” count as a ‘tax loss sale’? › Reply To: Does a “cash liquidation distribution” count as a ‘tax loss sale’?
Although the liquidating distributions were reported on 1099-DIV, the transaction is treated as a sale. You can report a loss as of the time of the last distribution if the total of all the liquidating distributions is less than your basis in the shares. Note that if any of the liquidating distributions were made in 2021, you can’t claim the loss in 2020. The information appears on this page: