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1099 MISC received for the recovery of a portion of an investment where the company filed Chapter 11. The loss was far greater than the recovery. How do I properly show the recovery was a net loss?
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You need to enter this in the Investment section of TurboTax. Delete the 1099-MISC form that you entered.
As long as you did not report the loss in a previous year, you'll be able to claim the 59% loss on your income tax return.
- However, you can deduct a net loss of up to $3,000 ($1,500 if married filing separately).
- Any capital loss you couldn't deduct this year can be carried forward and deducted on future tax returns as a capital loss carryover.
To enter your investment, follow these instructions:
- Open or continue your return in TurboTax.
- In the search box, search for investment sales and select the Jump to link in the search results.
- Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2019? screen.
- If you land on the Here's the info we have for these investment sales screen, select Add More Sales.
- Answer No to the 1099-B question.
- On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
- On the next screen, select Other and answer the questions to finish entering your sale.
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