Cash Liquidation Distribution
- 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:
liquidation — Occurs when a firm s business is terminated. assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a long or short position. Related: buy in, evening up … Financial and business terms
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
distribution — dis·tri·bu·tion /ˌdis trə byü shən/ n 1: the act or process of distributing: as a: the apportionment by a court of the property and esp. personal property of an intestate among those entitled to it according to statute compare descent, devise … Law dictionary
liquidation — The act or process of settling or making clear, fixed, and determinate that which before was uncertain or unascertained. Payment, satisfaction, or collection; realization on assets and discharge of liabilities. To clear away (to lessen) a debt.… … Black's law dictionary
liquidation — The act or process of settling or making clear, fixed, and determinate that which before was uncertain or unascertained. Payment, satisfaction, or collection; realization on assets and discharge of liabilities. To clear away (to lessen) a debt.… … Black's law dictionary
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
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
