- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
For the current year report the partial liquidating distribution on the 1099DIV entry forms and enter the amount in box 9. This distribution will not be taxable but it does reduce your basis. You do not report this basis reduction on your 2019 return.
When you receive the final distribution you will again report the 1099DIV amount. Then you will also have to enter the proceeds and basis in the investment income section and report the gain or loss. your proceeds would be the final distribution amount and your basis would be your original basis less the prior partial distribution(s). Unless you receive a 1099B with the final distribution make sure you answer NO to "did you receive a 1099B".
If the 2019 distribution is greater than your basis (i.e. you have a net gain) you would report the 1099DIV amount and also report any gain using the investment income entry section.
NOTE: The amount entered in Box 9 on the 1099DIV inputs will not be treated as taxable income by Turbo Tax. So if you also make an entry in the investment section you will not double counting income. the only way to report the gain or loss is by making the additional entry in the investment income section. It's necessarily intuitive but that is the only way to get any gain or loss reported.
**Mark the post that answers your question by clicking on "Mark as Best Answer"