Deductions & credits

The example on page 85 appears to be the same as your situation.  You may claim the nonbusiness bad debt deduction as explained in this TurboTax Help.

To enter the form manually In TurboTax Premium Online, follow these steps:

1. Down the left side of the screen, click Federal.
2. Down the left side of the screen, click Wages & Income.
3. Click the down arrow to the right of Investments and Savings.
4. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
5. Click Add investments.
6. On the Let's import your tax info screen, select Enter a different way.
7. On the OK, let's start with one investment type screen, select Other, then Continue.
8. At the screen Tell us more, enter the information.  Include the term 'worthless'.  Click Continue.
9. On the screen Now, enter one sale, enter the information.
10. What type of investment, select Other.
11. How did you receive it, select Something else.
12. Enter the the term 'worthless' within the Description.
13. Enter $0 for Proceeds.
14. Enter the amount of the loss for Cost or other basis.
15. Select Continue.

IRS Publication 550, page 85, states:

Insolvency of contractor

You can take a bad debt deduction for the amount you deposit with a contractor if the contractor becomes insolvent and you are unable to recover your deposit. If the deposit is for work unrelated to your trade or business, it is a nonbusiness bad debt deduction.

Was the debt dissolved in bankruptcy in 2024 or 2025?  Page 84 states:

You may be able to deduct the amount owed to you when you figure your tax for the year the debt becomes worthless.

The $3,000 limit is the amount of capital loss carryover that can be used to offset ordinary income.  There is no limit on how much of the carryover can be used to offset capital gains.  

So, if you report a loss of $10,000 in 2025 and you have no other sales of capital assets to report in 2025, you will be able to claim $3,000 and carryover $7,000.

In 2026, you have a loss on capital assets of $1,000.  The carryover covers the $1,000 as well as the $3,000 that can be used to offset ordinary income. You are left with $3,000 to carryover to 2027.