Hi David, thank you so much for your reply. Yes, I need to report a capital gain on a distribution from my husband's employer (LLC, a previous startup) where my tax basis is $0. My husband was granted those stock options as part of his employment letter in 2015. We received a K-1 in 2015 which was essentially blank in terms of financial data and then not again until TY2019 for the distribution. In the Partner Footnotes that supplements the K-1, it explicitly states that the tax basis is $0 so I'm certain that the entire distribution is taxable (as a capital gain).
I had actually started filling out the Forms directly instead of Step-by-Step (an epiphany I had after I finished my barrage of posts to the Community!) and I think had it figured out but your guidance about selecting "Everything else" (instead of Stock) was EXACTLY what I was looking for! I was so focused on accounting for it as a sale of stock (per the "Learn More" instructions in Turbo Tax) that I failed to see it. THANK YOU very much for your help and guidance!!
