Based on the original question and follow-up responses:
- You indicate that your final K-1 has an amount on line 16 code D.
- Does this represent your liquidating distribution?
- Technically the liquidating distribution should be reported on form 1099-DIV and NOT the K-1
- Your facts also indicate that you only received cash as a liquidating distribution.
- As such, you need to input the items reflected on your K-1 in TT just as any other year
- You then need to update your tax basis (form 7203)
- Do not adjust your tax basis for the liquidating distribution
- You will have two levels of tax
- The first is associated with the sale of the land reported on the K-1. TT will handle this based on your input.
- The second is the difference between your stock basis and your liquidating distribution
- This second level of tax will be reported on form 8949 and then Schedule D
- TT will ask questions related to the final K-1. It is here that you will input your stock basis (not adjusted for the liquidating distribution), and then the selling price will be the liquidating distribution amount.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
