I work in the United States. My Netherlands based employer offered me to buy into an employee equity program organized as a Dutch BV. My basis is approximately $4000 from two purchases in 2011 and 2013. I received annual dividends each year which I have reported as dividends. Since the 2013 purchase I have always had XXX shares.

The company was purchased by a different European company in 2016. The cash payout to the employee equity BV was held in escrow and paid out over 3 years as dividends, on the order of $6000 in 2016 and $1000 in 2017. I have reported these (and foreign tax withheld) as dividends. The reporting format is a Dutch Dividend Note (not a 1099) and states these payments are dividends.

The final dividend was paid in September 2018, and was $40. There was a year end statement that my XXX shares had $0 value at the end of the year. The shares were formally liquidated at $0 value in March 2019.


My interpretation is that I report the dividend in 2018 as a dividend, and the liquidation event at $0 in 2019 is the sale. Is this correct? While this makes sense to me, I will end up with my entire basis as a capital loss against proceeds of $0 in 2019.


  • Do I consider the final 2018 dividend as the sale and wrap this up now?
  • Do I need to correct my 2016 and 2017 returns to consider the reported dividends as sale proceeds instead (contrary to the Dutch statement) and allocate the basis somehow?

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.