Question 1

When is Form 1099-CAP issued?

Accepted Answer

When a corporation undergoes a change in control or substantial change in capital structure and shareholders receive cash, stock, or other property in exchange for their shares.

Question 2

How do I report Form 1099-CAP?

Accepted Answer

Report the transaction on Form 8949 and Schedule D. The amount received may be treated as a sale of stock, resulting in a capital gain or loss.

Question 3

Is this the same as a stock split?

Accepted Answer

No. A regular stock split does not trigger Form 1099-CAP. This form is for significant corporate events where shareholders receive consideration in exchange for their shares.

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