I own some shares in a family timber company organized as an S Corp and the company will be liquidated and its land sold this year…the proceeds will likely be distributed to shareholders via line 8a on the K-1 as net LTCG. I have the IRS rules for determining the cost basis for my shares but am unsure how to deduct the cost basis. Is subtracting them from the net LTCG line 8a on the K-1 and then entering that number into TurboTax the correct procedure of do I need to enter them someplace else? I see that whatever I enter on the K-1 gets passed through to the Schedule D as Net LTCG so subtracting the basis and entering that instead of the K-1 number seems right…but I'm not sure.
