Box 10 of the 1099-DIV form contains Non-Cash Liquidation Distributions. This indicates the assets (other than cash) that the taxpayer received when the entity they invested in was liquidated. These distributions reduce your basis in the investment.
Your basis in the investment determines how to report the amount listed in Box 10. If the amount listed in Box 10 is a return of your basis, it is not reported. If the amount listed is more than your basis, the excess is reported as capital gains.
To report this as a capital gain:
- Federal Section
- Income
- Capital gains and losses
- Capital Gains and Loss items