As long as the silver wasn't inside an IRA, you can enter it similar to a worthless stock. But there some rules you must know.
- You can’t take an investment until the year the investment becomes worthless, so you’ll have to show that the stock had value at the beginning of the year, but not at the end of the year. If you bought stock in a company that went bankrupt, until the bankruptcy is discharged you might not know whether you can collect anything, so you get no deduction until then.
- You can deduct losses on the sale of securities. If you believe that the stock won’t ever pay off, but you can’t prove it is worthless, sell it on the open market for a few pennies or a dollar to nail down your deduction.
- If you can’t sell the security, you can abandon it. You do that by giving up all rights in the security and not receiving anything in return.
- If you learn your investment became worthless in a prior year, file an amended tax return for that year to claim a refund. Though usually you have just three years to file an amended return, in the case of worthless investments you have up to seven years from the date your original return was due to claim a deduction.
- You report the loss on Schedule D of your tax return, and list it as though it were an asset sold on the last day of the year. TurboTax easily guides you through the interview and puts your tax information on the appropriate forms so you can take this deduction.
If you received a Form 1099-B, follow steps 1 and 2 below.
Enter a worthless stock like any stock sale but with a sales price of zero and the word "worthless" in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.
If you did not receive a Form 1099-B, here are the steps to enter your investment sale because it is worthless:
1. With your return open, search for worthless stocks in the TurboTax search box and then click the Jump to worthless stocks link in the search results.
2. Answer Yes to the question Did you sell any investments in 2015?
o If you land on the Here's the investment sales we have so far screen, click Add More Sales.
3. Answer No to the 1099-B question.
4. On the next screen, select the type of sale you had (stock, second home, collectible, land etc.) and click Continue.
5. Continue following the onscreen instructions to enter the sale date of the disposition/bankruptcy/worthless stock, etc.