1099-R notes final distribution of dissolved REIT. Fed/state taxes withheld on 1099. Should withheld taxes also be entered on Capital gains/loss worksheet?

[Burt38]

1099-R is reporting final disbursement of funds in REIT. That final disbursement represents major loss from initial value of REIT. 

[Critter]

Should withheld taxes also be entered on Capital gains/loss worksheet?

NO ... and the loss in the investment is not reported on a Sch D if it was inside a retirement account.

[Burt38]

TurboTax Schedule D is generated and cannot be deleted?

[Critter]

Remove the sale to remove the form.

[Critter]

Switch to the FORMS mode and delete the sale.