What is the correct way to report a sale of private stock in a small business that was sold prior to the current tax year and has not yet been reported on previous tax returns?
Issue
The 1099-B Form, "Box 1c - Date sold or disposed" does not allow a date prior to the current tax year to be entered.
Example
The current tax year is 2021, and $1,000 has been invested in a private company in January, 1, 2010 that went out of business in December, 1, 2020. The taxpayer was informed of the company going out of business in 2021 and needs to report the $1,000 loss in private stock on the 1099-B form. However, Box 1c does not allow any date to be entered prior to 2021.
User flow
"Federal" > "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other" > "Add more sales" > "Stocks, Bonds, Mutual Funds (options, index funds, ETFs)" > "I'll type it myself" > "Sales info (Boxes 1a - 1e)" > "Box 1c - Date sold or disposed"
