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mgw
Visitor I

Input return of equity investment - Sched D / 1099B

In 2016 my wife worked for a company that was purchased by an equity firm.  As part of the acquisition she had the opportunity to invest some of her own money for a minor stake in the new company.  She invested $75K in August 2016 but as part of a re-org in 2017 she left the company.  As part of her separation agreement the equity firm agreed to return her $75K investment because it hadn't vested yet which they did in Sept 2017.

 

We have been advised that even though there was no capital gain we should still report the transaction on Sched D and enter it as a broker transaction indicating we were not sent a 1099B.    I want to make sure I've input the transaction correctly:

 

  1. I searched and jumped to 1099B,
  2. Indicated I did not get a 1099B,
  3. For the type I selected "Everything Else" because not of the other types seemed to fit
  4. Entered in the transaction as "Company Name Equity Stake Return" and proceeds of $75K
  5. Indicated that the stake was purchased in 2016 for $75K which it then as expected calculates a gain of zero.

It all seems like the right way to do it but I was hoping someone with experience with this kind of thing could confirm I didn't miss anything.

 

Thanks