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What is IRS Form 1099-CAP?

April 26, 2017form IRS tax preparation

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What is IRS Form 1099-CAP?

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Form 1099-CAP is sent to taxpayers if they own part of a company whose corporate structure has changed in the past year. Tax laws are different for sole proprietorship, partnerships, and several kinds of corporations. When a company has changed its structure, this may result in a change in tax liability for its owners. Any gains realized from this change must be included on Schedule D of Form 1040. No losses can be claimed. You do not have to submit this form to the IRS.