Cash liquidation distributions are an amount of capital that is being returned to you. It is generally a return on your principal investment. It is only taxable to the extent that it exceeds your basis in the investment.
To enter the remainder of the information you will be prompted to upgrade to Premier.
When you are on the "Your Income" page:
- Scroll to Investment Income
- Click on Show More if needed
- Click on the button beside Stocks, Mutual Funds, Bonds, Other
- Click Yes
- On the "Did you get a 1099-B or a brokerage statement for these sales?" click no. (This is coming from your Form 1099-DIV)
- Click beside Stocks
- Enter Cash Liquidation distribution in the description box and any other information you have. You do not need to know the number of shares.
- You will be asked if you bought the stock
- Enter the date of purchase
- Your total purchase price will most likely equal the amount of the distribution. If the amount of the distribution exceeds the original cost of your investment, enter the original cost
- You will be asked if the sale was for Qualified Small Business Stock - you can click on the Learn More link to determine if this applies to you.
