You will report as the sale of an investment the same way you would report the sale of a stock. While working in your return:
- In the income section, Select Investments and Savings....
- On the page "Did you have investment income in 2024?" Answer Yes
- On the page "Let's Import your tax info" click on "Enter a different way"
- Select "Stocks, Bonds, Mutual Funds" on the OK let's start with one investment type
- When asked "Which bank or brokerage is on our 1099-B?" Give a description of the investment for the bank or brokerage, leave the other fields blank. Click Continue
- Answer No to the next three questions
- Answer Yes to "Did you buy every investment listed...."
- Select "One by One"
- Continue past the "1099-B"
- On the page "Now, enter one sale..." for Sales section, select either "Short-term did not receive 1099-B form" or "Long-term did not receive 1099-B form"
- For type of investment select Bond & give a brief description
- Enter the date acquired and the date you learned they were no longer in business
- Your proceeds will be $0. You cost basis will be what you paid for the Note
- On the next page, click Continue, and your done