This answer has been verified for accuracy by an Intuit expert employee
Investors & landlords
You can enter a worthless security sale into TurboTax to adjust Form 8949. If you have verified the stock truly became worthless during 2025, you can report the sale of the stock on the last day of the year (12/31/25) with $0 proceeds.
Enter all of this information as though you received a 1099-B for it. Then make certain that you save all of the documentation** that proves that the stock was worthless and what you paid for it in case there are any questions later. Where do I enter a 1099-B?
On the entry screen, check the box that says The cost basis is missing or incorrect on my form.
On the following screen, mark the box that says This was a worthless security.
**You must retain:
- Bankruptcy filing or docket
- Broker notice showing removal / worthless designation
- Public announcement showing equity holders receive nothing
If audited, this is what substantiates the loss year.
