You can deduct worthless stock only in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make a company's stock worthless unless there is no hope that the company will pull through.
To enter the worthless stock:
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.
1. Open
your return.
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
2. Type worthless stock in the search bar and click search.
3. Click on Jump to worthless stock.
4. If you land on Here's the investment sales we have so far screen, either edit or Add More Sales.
5. On the Did you get a 1099-B or a brokerage statement for these sales, answer No, if you did not get a form.
6. On the Choose the type of investment you sold screen, click on Stocks.
7. Continue with on onscreen interview until you get to the Do Any Special Situations Apply to This Sale? screen. click on Worthless securities.
8. Continue with the onscreen interview.
Related
Information:
