DDollar
Expert Alumni

Business & farm

Yes, you report this on your personal tax return. You will enter this under the Investment Income area of Wages & Income.

  1. Choose Personal >> Wages and Income, then I’ll Choose What I Work On.
  2. Investment Income >> Stocks, Mutual Funds >> Start/Update.
  3. Type of Investment: Everything Else
  4. Enter a description, Net Proceeds = $0 and date of sale = dissolution date.
  5. Acquired: Other method
  6. Cost Basis: your investment basis at dissolution
  7. Date of Acquisition: date you made your investment

TurboTax will calculate the loss on this investment and determine if it was short- or long-term. If you have other capital gains, the loss will offset some or all of the gains. Otherwise, up to $3,000 of the capital loss will go to line 13 of Form 1040 and offset other income. The remaining loss over $3,000 will be carried forward each year until used up (applied to capital gains and/or ordinary income).


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