the one thing you have to be careful of is that you have enough basis so the distribution is not taxable.
you start out with your tax basis before the distribution. if it is negative the distribution will be fully taxable - if you held the stock for more than 1 year as a long-term capital gain. if you have a positive basis the distribution reduces this $ for $. if you still have a positive basis the distribution is tax-free. if it's negative the distribution is taxable to the extent your tax basis is negative. the taxable portion, if any, does not reduce your basis so you would likely have a zero basis.
