S Corp - Closing and Disposition of Assets

I have an S Corp which I am filing the final report for. We have $110k of basis in assets we bought that are now worthless. The basis as reported on our 7203 is $120k net of ~$10k distributions in cash and inventory value.

My understanding is that we can net this off our taxable income in our 1040 - my question is how to report this final capital loss on our K-1 or 1020 in turbotax as it's not ordinary business income?

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