The sale of the S-Corp stock would be reported in the Investment section of Turbo Tax.
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start or Revisit at Stocks, Mutual Funds , Bonds, Other
• Select No you did not get a 1099-B for this transaction
• Select Other for type of investment
• Enter the computed difference between the years distributions (proceeds) and the basis (you will either need to compute the basis yourself or you may be able to get that information from the S-corp management).
Make sure you calculate your cost of the stock sold. Your cost will be what you paid for the stock initially, increased by S-Corporation gains that you report, and decreased by S-Corporation losses. Please note that this may be significantly different than the original cost of the shares.
See http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/S-Corporation-Stock-and-Debt-Basis for more information on computing your cost basis.
