A client presented a 1099R with the following info:

1-Gross dist: $85,200

2a Taxable Amount $85,200

2b Taxable Amt Not Determined - checked, Total Dist checked

7 Dist Code - K7

IRA/SEP/SIMPLE checked

He has receipts showing his basis in this investment is $65,000

How can I account for the basis so he isn't taxed on the full $85200.

Thanks!