OK, it seems clear that even a partial liquidation (as in AABA) should be reported as a capital gain if the distribution is more than the cost basis (essentially it's a return on capital that exceeded the original basis.
What no one has made clear yet is where to enter this in TurboTax. It's not a stock sale. We still hold the stock and it doesn't appear on our 1099-B. There must be a section in TurboTax where we can enter a return on capital that results in a capital gain. What section is that? I don't believe entering it as a stock sale is the correct way to do it. There must be a better section for these kinds of things.
