Nondividend Distributions on a particular stock sold?

[AZ-Tax]

Client sold a particular stock in 2009 and his 1099 displays the proceeds. His 1099 also display $55 of "nondividend distributions" related to this same particular stock. I understand the $55 is a "return of capital". The TTB says this $55 needs to be reported on Sch D so how exactly do you report this along with the "cost basis" of the particular stock?

[Gene V]

Client sold a particular stock in 2009 and his 1099 displays the proceeds. His 1099 also display $55 of "nondividend distributions" related to this same particular stock. I understand the $55 is a "return of capital". The TTB says this $55 needs to be reported on Sch D so how exactly do you report this along with the "cost basis" of the particular stock?

You would reduce your cost by the $55 on column "E" Schedule "D"

Box 3. Shows the part of the distribution that is nontaxable because
it is a return of your cost (or other basis). You must reduce your cost
or other basis by this amount for figuring gain or loss when you sell
your stock. But if you get back all your cost (or other basis), report
future distributions as capital gains. See Pub. 550, Investment
Income and Expenses.