Claiming a loss for stock in a bankrupt company - here are some steps to guide you through it using TurboTax for 2024.
- Start by opening or continuing your tax return in TurboTax.
- Go to the investment sales section, you can search for "investment sales" in the magnifying glass at top right of screen and select the "Jump to" link.
- When you land on the "Your investments and savings" screen, select "Add investments."
- Since you didn't receive a 1099-B form, you'll need to manually enter the details of the stock (select type myself)
- Description: Enter the name of the stock and mark it as "worthless."
- Date Acquired: Enter the date you originally purchased the stock.
- Date Sold: Use December 31 of the tax year (2024) as the date sold.
- Sales Price: Enter zero as the sales price.
- Cost or Basis: Enter the original purchase price of the stock.
- Indicate No 1099-B Received: When prompted, indicate that you did not receive a 1099-B form for this transaction.
Additional Tips:
- Capital Loss Deduction: You can deduct up to $3,000 of capital losses ($1,500 if married filing separately) against your ordinary income. Any remaining loss can be carried forward to future years.
