How can I use Turbotax Deluxe to write off losses in stock investments that went bankrupt and are greater than $3000?

[Critter-3]

Once you tell your broker to sell off the worthless stock (usually the broker will buy it for a buck) then the sale will be listed on the 1099-B  and then you can report the loss on the return.  

[skysdlimit]

I have the 1099-B and i've entered all the information into turbotax but it's only writing off $3000 and leaving the rest to be carried over.  I want to write off the total loss this year vs carrying over increments of $3000.  Is that possible through turbotax deluxe?  If so, how do input it, make it so?? 

[Critter-3]

Well what you want and what the IRS allows may be very different ... the program follows the IRS rules correctly. 

[skysdlimit]

my understanding was the irs allows you to write down 100% of your losses when the loss is due to bankruptcy, no?  otherwise, you're held to $3k for the year and carrying over excess losses in maximum increments of 3k until you no more losses to write off.

[Critter-3]

You are mistaken ... the annual cap gains are netted against the losses on the Sch D  and then up to $3000 of remaining loss can be taken against ordinary income and the balance is carried forward.