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Whether you report the gain as a long-term or short-term capital gain depends on how long you have held the stock.
Q: What are the tax implications for Box 8, Cash Liquidation Distributions for Non-Taxable Accounts (such as IRAs)?
A: Use the calculator below, or take the following steps to make the calculation: According to IRS pronouncements, including IRS Publication 550 (excerpts of which are reproduced below), the calculations should generally be computed separately for each block of shares owned by a taxpayer (i.e., shares acquired in multiple transactions at different times), although use of an average cost across multiple blocks of stock is permitted in certain cases.
If you need assistance locating the documents or amounts required for Steps 1 and 2 above, please contact Hines Investor Services at 888.220.6121.
Our principal business activities include investing and making loans secured by real estate, joint venture investments with local real estate partners and acquiring equity and debt securities where the underlying assets consist of real estate.
Our management team is composed of individuals whose careers have been devoted to a value oriented opportunistic real estate investment strategy.
Shareholders should consult their Forms 1099-DIV as provided previously for each year for dollar amounts, and shareholders must contact their tax advisors.
A: As long as the cash remains within the Qualified Account and is not distributed out of the Qualified account, receipt of Cash Liquidation Distributions by such an account generally will not have any immediate tax implications.
Q: How do I calculate the cost basis of the investment?
If you acquired stock in the same corporation in more than one transaction, you own more than one block of stock in the corporation. You can report a capital loss only after you have received the final distribution in liquidation that results in the redemption or cancellation of the stock.
If you receive distributions from the corporation in complete liquidation, you must divide the distribution among the blocks of stock you own in the following proportion: the number of shares in that block over the total number of shares you own. Whether you report the loss as a long-term or short-term capital loss depends on how long you held the stock.