@Filing564 wrote:
Thanks Champ for your response.
The loss occurred on regular Trading account on Fidelity Platform. I did call fidelity last year for this as it did not show up on my 1099 form they said, you can just declare it with the statement showing it is loss. No one really answered it on their side.
One person on call from fidelity said, you can declare it anytime in next few years as I presumed since all this was happening in Feb 2020, (presumably that is when broker bought that loss from me as Champ explained), so now this loss will show up on my 2020 taxable 1099 form, hence i did not declare it on 2019 returns hoping will be easier to do in 2020 return, but again loss does not show up on 2020 1099 form ...
I guess I still have to know when the loss was actually realized. If you have a stock on your statement showing a purchase price of $100 and a current value of 5 cents, that certainly a loss but it hasn't been realized until you sell the shares. If the shares were declared worthless in 2019 and taken out of your account by the broker, then your loss was realized in 2019 and you have to amend your 2019 return to claim it.
