Cash Liquidation Distribution
- The amount of capital that is returned to the investor or business owner when a business is liquidated. Cash liquidation distributions are usually considered a nontaxable return of principal. Credit unions send this sort of distribution to their depositors when they are liquidated as well.
Proceeds from cash liquidation distributions are reported on Form 1099-DIV. However, only the amount of distribution that is in excess of the recipient's original investment is taxable. The gain is then reported on schedule D.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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liquidation proceedings — ( interim payment) Euroclear Clearing and Settlement glossary liquidation / liquidating dividend Euroclear Clearing and Settlement glossary Distribution of cash, assets, or both. Debt may be paid in order of priority based on preferred claims to… … Financial and business terms
liquidation — (interim payment) liquidating dividend / liquidation proceedings Distribution of cash, assets, or both. Debt may be paid in order of priority based on preferred claims to assets specified by the security. Security holders may be able to choose… … Euroclear glossary
liquidation proceedings — (interim payment) liquidation / liquidating dividend Distribution of cash, assets, or both. Debt may be paid in order of priority based on preferred claims to assets specified by the security. Security holders may be able to choose the form of… … Euroclear glossary
liquidation — index aberemurder, assassination, cancellation, composition (agreement in bankruptcy), discharge (payment), dispatch (act of putting to death) … Law dictionary
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distribution — The giving out or division among a number, sharing or parceling out, allotting, dispensing, apportioning. Corporate. A direct or indirect transfer of money or other property (except its own shares) or incurrence of indebtedness by a corporation… … Black's law dictionary
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