June 6, 2019 4:38 AM
That would be what I recommend. However the facts are not clear on how to handle the other aspect of this disposition:
- Technically your basis cannot go negative.
- Based on bullet number 1, do you have suspended losses?
- If you do have suspended losses, you can only take the losses to the extent of your basis; effectively arriving at a zero basis. Anything remaining will be lost; no economic loss.
- If you don't have suspended losses you will need to pick up the "negative" basis amount as capital gain on Schedule D and the applicable form 8949.
*A reminder that posts in a forum such as this do not constitute tax advice.*