Proceeds from cash liquidation distributions are reported on Form 1099-DIV. To the extent that the amount of distribution that is in excess of the recipient's original investment is taxable.
If there is a gain, it is then reported on schedule D. You would enter that as if you received a 1099-B. In most cases this is unreported on Schedule D.... normally your basis is greater. Then the distribution amount is just a reduction in your cost basis. You would only recognize gains if it fully reduced your basis below 0.
Continue with the interview in TurboTax, and you should be asked for these details.
Click this link for more info on Reporting a Liquidation Distribution.
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