This is my understanding and in no way is it legal or professional.
Turbotax does not pick it up because it is not reported as a 1099-B so you have to manually enter it.
You can find you basis in a monthly brokerage statement (say end of year statement). If the basis is not 0 then
the basis gets reduced by the cash distribution amount and this needs to be taken into account in any future cash distribution or sale. If the basis is not 0 after this reduction then no reporting is currently needed.
If the basis reduces to 0 then the excess of the cash distribution is reportable as a sale.
If you go to Investment income under Wages & Income and then Stocks. You just add a sale. The amount of the cash distribution (or the excess after the basis is reduced to 0) is the proceeds and the basis is 0. The date of the cash distribution is the sale date. If you do not have the acquisition date you can choose from the drop down menu.
