You must determine the holding period to determine if the capital loss is short term (one year or less) or long term (more than one year). Report worthless securities on Part I or Part II of Form 8949, and indicate as a worthless security deduction by writing Worthless in the applicable column of Form 8949.Jan 4, 2021
IRS Guidance On Losses (Home, Stocks, Securities, etc.)
Benefiting From Worthless Stocks and Securities During Covid
To enter worthless stock as investment sales:
- Open (continue) your return in TurboTax.
- In the search box, search for investment sales then click the "Jump to" link in the search results.
- Answer Yes to the question Did you sell any investments?
- If you land on the Here's the investment sales we have so far screen, click Add More Sales.
- Answer No to the 1099-B question.
- On the next screen, select the type of sale you had (stock, second home, collectible, land etc.) and click Continue.
- Continue following the onscreen instructions to enter the sale.
