Based on the your question provided, since the distribution was reported on Form 1099-R, the income has been entered in the Retirement Income Section.
The cost of the investment may be entered in the "investment income Section" under stocks, bonds, and other. You will show your purchase price in the initial investment with a sales price of "ZERO". Since this was a business investment, it should receive ordinary income/loss treatment and is fully deductible to offset the distribution shown on Form 1099-R.
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