In past TurboTax years, I was able to assign code L on Form 8949 for liquidation distributions that I could not report a loss yet. This was done by checking a box in “Select any less common adjustments that apply” that said “Any loss from this sale is not deductible for reasons other than disallowed wash sale...” By assigning code L to the distribution, the loss was “zero’ed out” by an adjustment in column g, and resulted in 0 in column h (Gain or Loss). However this section and option appears to be removed from TurboTax 2023.
I can in TurboTax 2023 assign code W (wash sale) to the distribution, to zero out the loss. But the distribution is not a wash sale by definition…
Please advise.
(Reason I can not report loss: Distributions less than basis. If the total liquidating distributions you receive are less than the basis of your stock, you may have a capital loss. You can report a capital loss only after you have received the final distribution in liquidation that results in the redemption or cancellation of the stock.)
