Realize gain or loss for 1099-B NOT report to IRS

[sop2023]

My 2024 tax year for 1099-B showed a LT loss in the Summary section NOT provide to IRS for the merger stock I sold in 2018 and reported the gain.  The original stock was AMR Corp but merged and I rec'd shares of AAL from this AMR I own.  Do I still need to report this loss from AMR Corp in my 2024 tax year? (AMR stock is showed worthless in 2024 that where the loss in my 1099-B from).

I am confused and don't know how to handle this transaction.  Should I remove this Loss from my download, so I don't have to report? 

[DianeW777]

No. The loss is allowed to be used to offset any gains for 2024. The fact that it is worthless and you have proof of that, you should report the sale. Keep the documents with your tax file.

You can report it in the year stock is deemed to be completely worthless. This usually happens when a company stops doing business or files bankruptcy.  You should be prepared with your proof and retain it in your tax file.

The sales price would be zero and the cost basis would be what you actually paid for the stock and December 31st as the date of sale.

 To enter worthless stock as investment sales: (You should use the description as 'Worthless'.)

1. Open (continue) your return in TurboTax.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link.
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! 
4. Answer No to the 1099-B question.
5. On the next screen, select the type of sale you had (stock, second home, collectible, land etc.) and click Continue.
6. Continue following the onscreen instructions to enter the sale. 

Helpful Information:

• IRS FAQ -Worthless Security