Deductions & credits

Since you received a K-1 in previous years. You may enter a K-1 for 2022 with all zero's and indicate that this is the "final" K-1. If you don't do this, TurboTax will keep carrying forward the K-1.

You can deduct worthless stock or a worthless investment only in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets.

1. Enter a worthless investment with a sales price of zero and the word "worthless" in its description. 
2. Enter the correct cost or basis, date acquired, and December 31 as the date sold.

This is entered in the investment section of TurboTax.

1. Open (continue) your return in TurboTax.
2. In the search box, search for investment sales then click the "Jump to" link in the search results.
3. Answer Yes to the question Did you sell any investments?
   • If you land on the Here's the investment sales we have so far or Your investments and savings screen, click Add More Sales or Add investments.
4. On the Let's import your tax info screen, select Enter a different way.
5. On the OK, let's start with one investment type screen, select Other (land, second homes, personal items) and Continue.
6. On the Tell us more about this sale screen, enter the name of the startup.
7. On the Now, enter one sale for XXX screen, enter the information. 
8. Continue following the onscreen instructions to enter the sale.