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Returning Member
posted Jan 15, 2020 9:40:32 PM

Adjusting cost basis for return of capital not on a K1

I have a 1099-DIV where I believe the distribution that is a return of capital gets put in box 2d3 non dividend distributions. When I sell the stock, this reduces my basis, and there is no way my broker will connect this on the statement of capital gains and reduce the cost basis beyond what I paid for it. Where do I enter this in turbo-tax ?

Is it entered manually under corrected cost basis , when you click thru it makes no mention of this in the step by step help ???

0 3 1309
3 Replies
Expert Alumni
Jan 16, 2020 12:12:55 PM

Your non-dividend distribution shows up in box 3 of your 1099-DIV.  Although you are entering the information from your 1099-DIV into TurboTax, it will not show up on your tax return. 

 

A non-dividend distribution is a "return of capital", or you are getting some of your original investment back. 

New Member
Feb 29, 2020 8:00:01 AM

On a partnership return do i have to adjust my annual capital accounts basis for a non dividend distribution

 

Expert Alumni
Mar 1, 2020 7:41:38 AM

Yes, any distribution to the partner  reduces the partner's basis in the partnership, and will need to be accounted for in Schedule M-2 on Form 1065 and item L of the partner's  Schedule K-1.