How do I show cash and noncash liquidation distributions?

[PatriciaV]

Please clarify where you need to show these distributions. On an individual return or on Schedule K-1 (what type of business)?

[chuck-hitter]

this is for a personal tax return.  Distributions were for closing a painting business that I owned 100%. It was a C corporation. They should be considered capital gains.

[RobertB4444]

If the distributions were just of the business being liquidated then they aren't taxable.  You already paid taxes on them when you earned the money that you put into the business.

If the distributions were from money that you made from selling the business then it would be entered under Investment Income in the Wages & Income section.  Go down to 'Stocks, Mutual Funds, Bonds, Other' and click there.  You will follow the prompts to enter how much you sold your business for, what date you sold it and what your basis was at the time of the sale.  Figuring your basis may be tricky - it is the value of everything the business owned that was transferred plus what you had contributed to start the business up.  Once that is subtracted from what you sold the business for you will pay capital gains tax on the profit.

@chuck-hitter