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New Member
posted Apr 28, 2020 11:55:20 AM

I have form 8949 from td ameritrade reporting a liquidation dividend …..where does it get entered onTT?

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1 Best answer
Level 13
Apr 29, 2020 7:13:11 AM

A liquidating distribution is treated in the same fashion as a "return of capital": it reduces your basis in the investment.  As long as your basis remains positive this is an entry that you only need to make in your own records, it's not entered in the income tax return. 

 

If a liquidating distribution is sufficient to drive the basis number negative, i.e., a "profit", then report the liquidating distribution as "proceeds" against the remaining basis using the "Stocks, Mutual Funds, Bonds, Other" interview, telling TurboTax that you did not receive a 1099-B.

1 Replies
Level 13
Apr 29, 2020 7:13:11 AM

A liquidating distribution is treated in the same fashion as a "return of capital": it reduces your basis in the investment.  As long as your basis remains positive this is an entry that you only need to make in your own records, it's not entered in the income tax return. 

 

If a liquidating distribution is sufficient to drive the basis number negative, i.e., a "profit", then report the liquidating distribution as "proceeds" against the remaining basis using the "Stocks, Mutual Funds, Bonds, Other" interview, telling TurboTax that you did not receive a 1099-B.