Tax reporting liquidating trust dating someone in your class
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?
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.
In the future, you will receive a pro-rata distribution from the Trust of any recoveries received from these efforts. You should consult your own tax advisor regarding the tax consequences and reporting obligations relating to your investment based upon your individual circumstances. You and your tax professional may find the attached documents useful in determining the appropriate tax treatment for your situation: Milo H.
The Trust has filed suit against numerous broker-dealers seeking to recover both the commissions paid them and additional damages caused by the broker-dealers. Segner, Jr., Liquidating Trustee of the PR Liquidating Trust, has undertaken significant litigation efforts to maximize the recovery for all investors in the Provident Royalties family of companies.
It is anticipated that there will be at least one more distribution to General Fund participants once all remaining litigation has been concluded.
Joseph Blimline was sentenced to 240 months in federal prison on May 3, 2012 for his role in the Provident investment fraud.
Distributions that exceed the Company’s current and accumulated tax earnings and profits constitute a return of capital and reduce the stockholders’ basis in the common shares. 331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits (E&P).The shareholders generally recognize gain (or loss) in an amount equal to the difference between the fair market value (FMV) of the assets received (whether they are cash, other property, or both) and the adjusted basis of the stock surrendered.331 when they receive the liquidation proceeds in exchange for their stock.If the corporation distributes its assets for later sale by the shareholders, the assets generally “come out” of the corporation with a basis equal to FMV (and with the related recognition of gain or loss under Sec.