you can report this Loss on Dissolution on your personal tax return. You will enter this under the Investment Income area of Wages & Income. In TurboTax Online Premier
- Choose Federal Taxes >>
Wages and Income
- Stocks, Mutual Funds, Bonds, Other >> Start or Edit/Add.
- Type of Investment:
Everything Else
- Enter a description, Net
Proceeds = $0 and date of sale = dissolution date.
- Acquired: Other method
- Cost Basis: your adjusted cost basis at dissolution
- 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).
