You can continue to follow the same procedure by entering the taxable gain as the selling price and leave the cost basis zero as indicated in the earlier posts by our awesome Tax Experts @ThomasM125 and @DaveF1006.
The taxable amount of the distribution is the same as if you entered a cost basis and the full amount of the payment.
Keep all tax documents with your tax return so that you will know the process should you need any information for the IRS at any time in the future (within the three year statute of limitations).
- Generally, the statute of limitations for the IRS to assess taxes on a taxpayer expires three (3) years from the due date of the return or the date on which it was filed, whichever is later. A return is considered to be filed on the due date of the return if it was filed on or before its due date.
@TaxNoob18
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