Investors & landlords

You are correct.  The amount of a non-dividend distribution is usually smaller than the investor's basis in the shares. In the rare case in which the distribution is more than the basis, the shareholder must reduce their cost basis to zero and report the excess amount of the distribution as a capital gain on IRS Form Schedule D.

To do this in TurboTax

Go to Wages & Income

1. Scroll to Investments and Savings

2. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)

3. Time to kick off your investments! = Okay

4. Time to kick off your investments! = Continue

5. Let's import your tax info = Enter a different way

6. There are five boxes available

   1. Interest

   2. Dividends

   3. Stocks, Bonds, Mutual Funds

   4. Cryptocurrency

   5. Other

7. You will select Other

You will then go through an interview process to describe the excess distribution.