How should I report a cash liquidation distribution when no 1099-B is reported to the IRS?

[cpbette]

Specifically how do I enter the transaction in the interview form?

[JohnB5677 · Accepted solution]

You will enter the liquidation as if you were entering a 1099-B.

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 Stocks, Bonds, Mutual Funds

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

You will have to have information about

• How you acquired the asset. (Purchased, gift, etc.)
• Is it Long/Short term
• It was not reported to IRS
• Date of sale
• Proceeds (Liquidation amount).
• Purchase date
• Purchase price

[SweetieJean]

Since you are asking from the Retirement section, did you liquidate a retirement account?   If so, you should have received a 1099-R (not a 1099-B), which is entered here:

Federal > Wages and Income > Retirement. 

[cpbette]

Thanks JohnB5677. It solved my problem.

[tomandjerry1]

This answer applies to my situation too.  I held some shares of Yahoo which I purchased in 2000 and than were subsequently converted into shares of ALTABA in 2017. Then the ALTABA liquidation began in 2019 and I started to receive distributions reported in box 9 of my 1099-DIVs for 2019 thru 2023. The final distribution occurred 2/17/20.  I created a 1099-B entry using 2/17/23 as the sale date, the sum of all the distributions as the sales price, the date my YAHOO got converted to ALTABA as my purchase date, and my original YAHOO purchase as basis to record the long term loss.  It's my understanding that TTAX would not have included any of the prior  box (9)   Cash liquidation distributions from my earlier 1099s as taxable income

[DaveF1006]

Yes this is correct. Any liquidating distribution you receive is not taxable to you until you have recovered the basis of your stock. After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain. 

As far as the basis, your original stock basis will be used unless you received new shares of  stock in the conversion.

If you weren't able to recover your original basis, then this is reported as a loss, which I assume happened in your case.

[Dean68]

I am trying to do this with the Premier version of TurboTax 2024. The menu is different. Can you explain how to do this with TurboTax 2024 Premier? Thanks

[MarilynG1]

• Go to Wages & Income > Investments > Stocks, Crypto, Mutual funds, Bonds, Other.
• Choose Stocks (1099-B) as Investment Type. Enter Bank Name, Continue. 
• Answer the questions on the next page, then Enter One by One, Continue.
• Then you'll get a screen with entry boxes for details, Date Purchased (can be various), Date Sold, Proceeds, Cost Basis (most important).

@Dean68