Get your taxes done using TurboTax
To enter the bankruptcy without a 1099-B follow these instructions:
- Click on Income & Investments
- Scroll to Investments and Savings and click on Start (or Edit or Review)
- Click on Add Investments. And then Continue on the next page
- Choose to Enter a different way
- Pick Stocks, Bonds, Mutual Funds and Continue
- Which bank or brokerage sent you a 1099-B for these sales?, Enter name of brokerage, and Continue
- Answer questions on next page and Continue
- Now, Choose how to enter your sales, One by one, Continue
- Continue past the page Look for your sales on your 1099-B
- You can enter your sales on the next page.
- In the first box, Sales section, Choose Short-term (or long-term) did not receive 1099-B form
Continue with the information for your sales
You would enter all of the information as though you did have a 1099-B with worthless as the description and December 31, 2022, as the date sold.
When entering the information, be sure to select that you did not receive a 1099-B form
You can deduct worthless stock only in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make a company's stock worthless unless there's no hope that the company will pull through.
Enter a worthless stock like any stock sale but with a sales price of zero and the word worthless in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.
