Yes, if the corporation dissolved on or before the last day of the tax year, you may report that the investment was disposed of (basically a sale for zero dollars).
You may report this under the Investment Income area of Wages & Income under Federal Taxes.
- Choose Federal Taxes >> Wages & Income, then "I’ll Choose What I Work On."
- Investment Income >> Stocks, Mutual Funds >> Start/Update.
- Type of Investment: Everything Else (you may choose "Stock" but the entry screens are different)
- Enter a description, Net Proceeds = $0 and date of sale equal to the date of dissolution.
- Acquired: whatever method fits
- Cost Basis: your total investment
- Date of Acquisition: the first date you bought stock
Continue to the end of the section to save your entries.
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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