You don't do anything with it until the basis in the underlying investment has been recovered.

Schedule D and the offset depends on how much the client had invested in the entity being liquated.  It could be a wash or it could be a gain depending on the amount invested.

I like your answer better, but any box 9 amounts I have had, have been nominal, so I don't do  anything with it.

Yeah, it's rare that I ever see anything significant for those things.

It's $492, but I have no idea what the cost basis of the investment is so I will ignore it. Thanks for your responses.