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pmeijles
Level 1

I worked for a startup for 4 years, and bought the vested ISO stock options when i left in 2017. The company folded last year. How to report on my tax return?

 
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ThomasM125
Expert Alumni

I worked for a startup for 4 years, and bought the vested ISO stock options when i left in 2017. The company folded last year. How to report on my tax return?

I believe you mean that you purchased stock and the stock became worthless in 2020. If so, you would report this as a sale of an investment in TurboTax as follows:

  1. Income and expenses
  2. Investment income
  3. Stocks, Mutual Funds, Bonds, Other
  4. Indicate the you didn't receive a 1099-B form
  5. Choose the I'll enter one sale at a time option
  6. Enter a description, date acquired, date sold, sale proceeds as $0 and the cost basis as the amount you paid for the stock

 

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1 Reply
ThomasM125
Expert Alumni

I worked for a startup for 4 years, and bought the vested ISO stock options when i left in 2017. The company folded last year. How to report on my tax return?

I believe you mean that you purchased stock and the stock became worthless in 2020. If so, you would report this as a sale of an investment in TurboTax as follows:

  1. Income and expenses
  2. Investment income
  3. Stocks, Mutual Funds, Bonds, Other
  4. Indicate the you didn't receive a 1099-B form
  5. Choose the I'll enter one sale at a time option
  6. Enter a description, date acquired, date sold, sale proceeds as $0 and the cost basis as the amount you paid for the stock

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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