If this was worthless stock or other investment:
- You
can deduct worthless stock or any other investment, only in the tax year it becomes completely
worthless.
- This
normally happens when the corporation files for bankruptcy, stops doing
business, and has no assets.
- Financial
difficulties won't make a company's stock worthless unless there is no hope
that the company will pull through.
To enter the worthless stock or other investment:
Enter a worthless stock like any sale but with
a sales price of zero and the word "worthless"
in its description.
Enter the correct cost or basis, date acquired, and December
31 as the date sold.
1. Open
your return.
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
2. Type worthless
stock in the search bar and
click search.
3. Click on Jump
to worthless stock.
4. If you land on Here's
the investment sales we have so far screen,
either edit or Add More Sales.
5. On the Did
you get a 1099-B or a brokerage statement for these sales, answer No, if you did not get a form.
6. On the Choose
the type of investment you sold screen, click on Stocks or other appropriate category.
7.
If you choose worthless stock, continue with on
onscreen interview until you get to the Do
Any Special Situations Apply to This Sale? screen. click on Worthless securities.
8. If you choose Everything else, continue with on onscreen interview until complete.
