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For my business how do I write off investments in my journal entries

 
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JamesG1
Expert Alumni

For my business how do I write off investments in my journal entries

This IRS FAQ states:

 

If you own securities, including stocks, and they become totally worthless, you have a capital loss but not a deduction for bad debt. Worthless securities also include securities that you abandon. To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it.

  • Treat worthless securities as though they were capital assets sold or exchanged on the last day of the tax year.
  • You must determine the holding period to determine if the capital loss is short term (one year or less) or long term (more than one year).
  • Report worthless securities on Part I or Part II of Form 8949, and indicate as a worthless security deduction by writing Worthless in the applicable column of Form 8949.

In TurboTax Online Self-employed, report the entry at Federal / Income & Expenses / Your income and expenses / Investments and Savings / Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).

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