Adjusting cost basis for return of capital not on a K1

paulv · ‎January 15, 2020

I have a 1099-DIV where I believe the distribution that is a return of capital gets put in box 2d3 non dividend distributions. When I sell the stock, this reduces my basis, and there is no way my broker will connect this on the statement of capital gains and reduce the cost basis beyond what I paid for it. Where do I enter this in turbo-tax ?

Is it entered manually under corrected cost basis , when you click thru it makes no mention of this in the step by step help ???

ReginaM · ‎January 16, 2020

Your non-dividend distribution shows up in box 3 of your 1099-DIV. Although you are entering the information from your 1099-DIV into TurboTax, it will not show up on your tax return.

A non-dividend distribution is a "return of capital", or you are getting some of your original investment back.

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markbonahoom · ‎February 29, 2020

On a partnership return do i have to adjust my annual capital accounts basis for a non dividend distribution

DavidS127 · ‎March 1, 2020

Yes, any distribution to the partner reduces the partner's basis in the partnership, and will need to be accounted for in Schedule M-2 on Form 1065 and item L of the partner's Schedule K-1.

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Adjusting cost basis for return of capital not on a K1

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