I received 141 contingent dividend shares of a holding company at no cost to me and as part of a bankruptcy settlement with the issuing company. The shares were "locked" (couldn't sell them/no market.). In 2025, the shares became worthless.
I tried entering this 1099-B as indicated in the screenshot. When I do an error check, Turbotax says I need to enter a holding period. It also says I need manually file a copy of the 1099 with the IRS using form 8453 or by mailing the 1099.
My question is, do I even need to report this 1099 info since there is no sales proceed and the cost is $0 and the holding period is unknown? Alternatively, should I just select short term/uncovered, as that would maximize cap gain, if there was actually a capital gain?
Thanks ~Bill
