I have stock in a company that declared bankruptcy. I never sold it so it isn't on a 1099-B. How do I claim the loss?

[SabrinaD2]

Claiming a loss for stock in a bankrupt company  - here are some steps to  guide you through it using TurboTax for 2024.

 

1. Start by opening or continuing your tax return in TurboTax.
2. Go to the investment sales section, you can search for "investment sales" in the magnifying glass at top right of screen and select the "Jump to" link.
3. When you land on the "Your investments and savings" screen, select "Add investments."
4. Since you didn't receive a 1099-B form, you'll need to manually enter the details of the stock (select type myself)
   1. Description: Enter the name of the stock and mark it as "worthless."
   2. Date Acquired: Enter the date you originally purchased the stock.
   3. Date Sold: Use December 31 of the tax year (2024) as the date sold.
   4. Sales Price: Enter zero as the sales price.
   5. Cost or Basis: Enter the original purchase price of the stock.
5. Indicate No 1099-B Received: When prompted, indicate that you did not receive a 1099-B form for this transaction.

Additional Tips:

• Capital Loss Deduction: You can deduct up to $3,000 of capital losses ($1,500 if married filing separately) against your ordinary income. Any remaining loss can be carried forward to future years.