Liquidating dividend calculation

A liquidating dividend is used when a corporation is dissolving and it needs to distribute its assets to its shareholders.

Paid after satisfying all corporate debts, the liquidating dividend is meant to provide a return on investment.

Q: Was the initial liquidating distribution of .20 per share the final liquidation of my investment?

The following Q&A and Cost Basis Calculator are designed to help you understand the tax implications of the initial liquidating distribution of .20 per share paid to shareholders in December 2016 and the remaining liquidating distributions.

Please note that this information is provided for illustrative purposes only and to help give you a general understanding of the consequences of the recent liquidating distributions. Shareholders must contact their tax advisors for specifics regarding the taxation of their individual investments.

A: No, in addition to the initial liquidating distribution, we expect to make one or more additional liquidating distributions in First Quarter 2017.

Q: How will the initial liquidating distribution be reported for tax purposes?

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