Yes, according to this Turbo Tax post, you issue yourself a 1099-DIV and report the $5000 in Box 9 on the 1099-DIV form. You will in turn report the 1099-DIV on your personal return with the amount listed in Box 9. You will then report the liquidating distribution as a stock sale. Here the basis and the proceeds of the sale is the same, resulting in no taxable income. To report as a stock sale.
- Go to federal>wages and income>investment income>stocks, bonds, other
- Now you will answer some preliminary questions. Say no if you did not receive a 1099B.
- Next screen is critical because it asks you for the sale price, description, what you originally paid for it, date sold, date acquired etc.
[ Edited 01/31/22|04:41 PM PST]
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