Yes, you may report this as an investment loss.
Enter this under the Investment Income area of Personal Income.
- Choose Personal >> Personal Income, then I’ll Choose What I Work On.
- Investment Income >>
Stocks, Mutual Funds >> Start/Update.
- Type of Investment:
Everything Else
- Enter a description, Net
Proceeds = $0, and date of sale = date of dissolution.
- Acquired: Whatever method
- Cost Basis: your investment
- Date of Acquisition: date you
made your investment
TurboTax will
calculate the loss on this investment and determine if it was short- or
long-term. If you have other capital gains, the loss will offset some or all of
the gains. Otherwise, up to $3,000 of the capital loss will go to line 13 of
Form 1040 and offset other income. The remaining loss over $3,000 will be
carried forward each year until used up (applied to capital gains and/or
ordinary income).
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