Payments received are first recorded as return of capital and then any payments in excess of your adjusted cost basis are capital gains.

After the final distribution has been made, if all your cost basis has not been paid back, at this point you can claim a capital loss for the remainder.

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About Morgan Stanley Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services.

With offices in more than 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals.

Q: What are the tax implications for Box 8, Cash Liquidation Distributions for Non-Taxable Accounts (such as IRAs)?

A: As long as the cash remains within the Qualified Account and is not distributed out of the Qualified account, receipt of Cash Liquidation Distributions by such an account generally will not have any immediate tax implications.

Investing involves risk and it is possible to lose money on any investment in the Fund.

This schedule is being provided as a courtesy so that you can assist shareholders in calculating the tax basis of their shares.For partial liquidations (that meet IRS definitions), it is treated as a deemed redemption of stock (even though no shares are surrendered.) Each payment received is therefore a partial return of capital and a partial capital gain or loss.The return of capital percentage is determined by dividing the distribution received per share by the market price of the stock before the distribution.The tax treatment for a payment identified by the company as a "liquidation distribution" or "liquidating dividend" depends on whether it is a partial or complete liquidation.A company may have sold all its assets and is dissolving (complete liquidation) or it may have sold a division or subsidiary and is distributing the net proceeds to shareholders (partial liquidation.)For complete liquidations (that meet IRS definitions), no gain is realized until all of your cost basis has been recovered.For more information about Morgan Stanley, please visit