JulieR
Expert Alumni

Get your taxes done using TurboTax

You'll report this loss on Schedule D of your return in the Personal Section of your return, under Personal Income/  Investment Income/ Stocks, Mutual Funds, Bonds, Other.  You will treat the investment like a sale.  The proceeds will be the amount you of money you received as a return of your investment.  The Cost Basis will be the sum of money you initially invested.

Please comment if you need additional help with this.