I have some old notes. See if this works or gets you close. It might have changed. I have the Desktop program I will double check it.
Enter a Bad Debt under
Federal Taxes (or Personal for Home & Business)
Wages and Income
Then scroll down to Investment Income
Then Stocks, Mutual Funds, Bonds, Other - Click Start or Revisit
Did you sell any Investments or Other? - YES
Did you Receive a 1099B? - NO Continue
Fill out the screens. For What kind of Investment pick OTHER
Then Stocks, Mutual Funds, Bonds, Other - Click Start or Update
If you see a screen that says….Did you have any of these Investment Sales say YES
If you have a screen showing your Investment Sales Summary - click on + Add More Sales
Next screen should ask Did you get a 1099B - Say NO
Next screen is Choose the type of investment you sold - Pick the Second One Uncollectable Debt
You can only deduct up to 3,000 (1,500 MFS) loss per year after any gains you have. The rest you will have to carryover until it is used up.
