Get your taxes done using TurboTax

Based on your description, it sounds like you have a Bond from an organization that went bankrupt.  If their bankruptcy filing has been completed and you received nothing for your investment with them, you would report this as a worthless security using a sale date of 12/31/2025.  If bankruptcy proceedings are still ongoing, there exists a possibility that you could receive payments from them for the worthless bond, in which case you should not file this as a worthless security.  Be sure to keep records of bankruptcy filings, news articles, etc. related to the company as proof that you will not receive anything.

In TurboTax Premier Online, follow these steps.       

1. Down the left side of the screen, click Federal.
2. Down the left side of the screen, click Wages & Income.
3. Click the down arrow to the right of Investments and Savings.
4. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
5. Click Add investments.
6. On the Let's import your tax info screen, select Enter a different way.
7. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
8. At the screen Which bank or brokerage, enter the information.  Click Continue.
9. Do these sales include any employee stock, enter No.
10. Do you have more than three sales, enter No.
11. Do these sales include any other types of investments, enter No.
12. Did you buy every investment listed, enter Yes.  Continue.
13. On the screen Now, choose how to enter your sales, select One by one.  Select Continue.
14. At the screen Look for your sales on your 1099-B, select Continue.
15. You will now be able to enter $0 total proceeds (sales) and your cost basis, along with the sales category (likely long term basis (over 1 year holding period) not reported to IRS).  Use 12/31/2025 as the sale date.  You will need to have the date of purchase entered also.  In the description, use the word Worthless.  Select Continue.
16. At the screen Review your sales, select Add another sale as necessary.
17. When completed, close the record and click Continue.