- 2025 TurboTax Home / Business
- Had a stock hit Chapter 11 mid year.
- Brokerage's summary printout shows NO 1099-B activity and Worthless stock was "not reported"
- Brokerage's supplemental notes instruct owners of the worthless stock to "Report on Form 8949, Part II, and check box F" "F" means there is no 1099-B issued and it's not a Digital asset.
- On the brokerage's supplemental page, there is $0 cost basis, the quantity of shares etc.
- So my run at this I try to complete a 1099-B and per TT instructions so I leave the cost basis blank on the 1099-B (Box 1e) but the field below I check that the "Cost Basis is incorrect or missing on my 1099-B" which by being an 8949 Type "F" is not a real issued 1099-B - only figures from the brokerage's supplemental notes and pages.
- Then I think TT asks a series of ? and one of them is "Is this stock worthless?" I check YES.
- TT then confirms the cost basis and asks if I want to change the cost basis on a subsequent prompt.
- I select YES. Then TT allows me to enter my actual Cost Basis for the worthless stock. (This is where I think it is broken.)
- However, TT does not appear to insert the cost basis anywhere on Form 8949, Section 2 when "F" is selected. I think this is where TT may be broken? The cost basis should included on 8949.
- The only 2 ways I can make the cost basis (loss) appear on 8949 is to check Box E (which means it was reported to the IRS on issued 1099-B), which is NOT what the brokerage's instructions are: "use 8949 Box F." OR if I enter the costs basis on the original 1099-B box 1e line vs leaving it blank and then letting TT ask me if I want to update the cost basis a screen or so later. Both routes will put the loss on the 8949.
- Finally, I hit forms and "overrode" the 8949 cost basis. Then, TT flags the form as ! RED unhappy and flags the entire return and pages as "Needs Attention".
I think the workflow is wrong. Even if I'm using 8949, Box F, TT should accept the stock's basis on that 2nd question and show that as a loss on 8949, Section II. All I get is $0.00 for the sales, $0.00 for costs.
Please confirm this is a bug and how to correct it or work around or is there a fix OTW? Thank You. G. Mobley
