How do I enter Employee Stock Purchase Plan losses when a company dissovles?

[steviet02]

I never received any forms except from ComputerShare with the ending statement period.

[LaShaunA3 · Accepted solution]

When a company dissolves and your ESPP shares become worthless, you can generally claim a capital loss, even if you didn't receive a 1099-B.

Determine your basis. This is usually the amount you paid through payroll deductions plus any amount previously included as compensation income. If the stock became completely worthless due to dissolution, the IRS treats it as if it were sold for $0 on the last day of the tax year in which it became worthless.

How do I enter Employee Stock Purchase Plan (ESPP) sales in TurboTax

There's a checkbox in the Schedule D dialogue for "This was a worthless security" that appears after you enter the security as Stock; date acquired, date sold (12/31/2025), zero Proceeds, and Basis.

 

[steviet02]

Thank you for the clear information. Looks like I will have to amend my 2024 return.  Appreciate the response.

Steve