With respect to HACKITOF's comment "form 8949 worksheet category C description distribution in excess of basis," I cannot find form 8949 worksheet anywhere in TurboTax Desktop, nor could I find a Category C Description anywhere on form 8949 or in the instructions to Form 8949. So unless further guidance is provided, distributions in excess of basis is best reported as a LT capital gain. In Turbotax, the best entry seems to ba a stock sale for which no 1099-B exists, and select the type of investment sold as "Everything Else." In the "learn more" section, you will see this is considered to be, by TurboTax, a Liquidating Distribution because "your cost basis in the stock is zero."
