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hsu-francis
New Member

Can worthless stocks be used to offset stock gains? I do not have a 1099B showing a "sale".

 
2 Replies
MayaD
Expert Alumni

Can worthless stocks be used to offset stock gains? I do not have a 1099B showing a "sale".

Yes, report capital losses on Form 8949, Form 1040 and Schedule D. Prepare documentation that proves the stock is worthless and establishes the approximate date on which it became worthless. You don't have to submit this documentation with your tax return, but you will need it if the IRS audits you.

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fanfare
Level 15

Can worthless stocks be used to offset stock gains? I do not have a 1099B showing a "sale".

you can do this only in the year the stock actually became worthless.

If you can get the broker to remove the stock from your account, that would help although it is not exactly kosher to use that event, you will have a 1099-B.

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