1099 DIV cash liquidation distribution cost basis

[mkreeger32]

I received a 1099-DIV and entered the amount in Box 9.  However this does not link to anywhere that allows me to enter the cost basis of the distribution.  How can I enter the cost basis so this appears on Schedule D instead of Schedule B?

[JamesG1]

Is this a complete liquidation of an investment and you are reporting the sale of the investment on Schedule D of the 1040?  I assume that you have received no 1099-B or other form for this sale?

Please report the 'sale' of the liquidated investment here:

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Income and expenses.
• Scroll down to Investment Income and click on Show more.
• Click Start / Revisit to the right of Stocks, Mutual Funds, Bonds, Other.
• Click Add more sales.
• At the screen Did or will you receive a 1099-B..., click No.

Now you can enter the 'sale' of the liquidated investment using the box 9 as the proceeds received for the sale.  You will have to enter your basis in the investment.

See this TurboTax Best answer.

[mkreeger32]

It is a final and complete liquidation.  We got a 1009-DIV with the amount in box 9 that we entered and it went Schedule B. In order to enter the basis- which is fully covered- we need to have it flow to or show up on Schedule D.  It seems we should be able to enter the 1099 DIV on B but maybe we should go straight to D? and not enter it both places?

[johnkennedy1122]

1099 Div indicates entering cash distribution on box 9 in Turbo tax. The amount never shows in the final form or is it taxable. Turbo Tax tells me to handle the 1099 Div cash distribution liquidation(box 9 entry) in investment income. I go to investment income and there is no place to handle the above. This appears to be a circular defect in the software.

[johnkennedy1122]

The answer indicates over riding the Turbo Tax software. Why do I have to reprogram Turbo Tax?

[mkreeger32]

 I first upgraded to Premier at an extra charge hoping that would fix it, but it didn't.  We were finally able to talk with TT customer service that finally figured it out after half an hour on the phone prior to them having to figure it out and call us back.  It was not too impressive, although the CS rep did stick with it and get the job done.

[MKruidhof]

@mkreeger32 

I am in the same situation this tax year (2020), TurboTax tells me that it will be taking care later within "Investment Income" but it never prompts me for the Box 9 "Cash Liquidation" amount.

You stated that Premier did not solve the issue, how was it resolved for you?

[mkreeger32]

Quite ho0nestly I don't remember how it was handled since it was a year ago and I am not an accountant.  However I finally was able to speak with somebody at TT to resolve it.  It was a challenge however getting TT to have somebody help versus this chat box with other novice users.

[PattiF]

In order to enter the information in Box 9 of the 1099-DIV which has information on a complete cash liquidation distribution without a 1099-B, you need to take the following steps:

• In Personal Income  Go to Investment Income
• Click on Stocks, Mutual Funds, Bonds, Other
• Then Add More Sales
• Did you get a 1099-B or a brokerage statement for these sales?
• Enter No
• Then I'll enter one sale at a time under Tell us about this sale
• Now enter the 'sale' of the liquidated investment using the box 9 amount as the proceeds received for the sale.
• You will have to enter your basis in the investment