MarilynG1
Employee Tax Expert

Get your taxes done using TurboTax

To the extent the cash liquidation distribution represents a return of your capital, it is not taxable; however, it still should be reported on your return.  Any amount in excess of your capital is also taxable, and reported as a capital gain.

 

If you are using TurboTax online, review the Investment & Savings section (Stocks, Mutual Funds, Cryptocurrency) and see if the amount has been included in your list of transactions. If not, you can add it.  If it is there, check your cost basis.  A zero as the cost basis would mean that the full amount of the distribution has been taxed as a capital gain.  If you have a cost basis, you can adjust the cost basis amount so that the capital gain is accurate.  

 

If you are using TurboTax CD/download, the cash liquidation should be in the Investment Income section.  

 

Here's more info on Reporting Cash Liquidation Distribution.

 

@lachance98 

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