Did you report a distribution for which you did not have sufficient basis?
For instance, a distribution of $3,000 for which you reported $2,000 in basis in the entity would report a $1,000 gain on IRS form 8949 / Schedule D Capital Gains and Losses.
The gain on the distribution may be reported here:
- Federal
- Wages & Income
- Investments and Savings
- Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
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