According to Awesome Turbo Agent HelenC12, she states to "enter a worthless stock like any stock sale but with a sales price of zero and the word "worthless" in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.
- 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."
- Yes, you can only claim $3k in losses each year. The remainder is carried over. The same rules apply no matter what type of investment loss it is.
[Edited 02-28-2021|05:46 PM PST]
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