If your
stock meets the IRS guidelines for being a worthless stock, you will
report this worthless stock in TurboTax Online or Desktop using the
follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home
& Business)
- Next click on “Wages &
Income”
("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose
what I work on” (jump to full list)
- Scroll down the screen until
to come to the section “Investment Income”
- Choose “Stocks,
Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already
worked on this section)
- The first screen will ask if
you sold any investments during the current tax year - yes
- Even though you did not
receive a 1099-B, answer “yes” to the 1099-B question
- Select you will type in the
information yourself
- Select if
short-term or long-term
- Enter your stock information
and use a "0" for sales proceeds.
- Include all other information about the sale and you should be a summary of the sale showing the net loss equal to the original cost basis in the shares. Since the shares are worthless, just use the last day of the calendar year as the date of sale (12/31/2016).
