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In TurboTax Business, reporting an Scorp tax return, I entered a worthless security with 'various' as date acquired and 'worthless' as date sold. I selected 'worthless securities' as Type of sale.
The entry is reported on IRS form 8949 Sales and Other Dispositions of Capital Assets under Part I and no adjustment entries are reported in columns (f) and (g).
This treatment is using the nonbusiness bad debt rules which show the debt as a short term capital gain. See IRS Publication 334 Tax Guide for Small Business, page 31 here.
Nonbusiness bad debts
All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040).
