Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Not applicable
posted Feb 24, 2021 7:15:04 PM

In 2019 a stock I owned did a reverse split, and I lost $1K towards capital loss. I didn't realize this happened until 2020. Should I try to revise my 2019 return?

Stock: OPTT

Can I uses this capital loss in my 2020 taxes?

0 1 434
1 Best answer
Expert Alumni
Feb 24, 2021 8:55:16 PM

No, you cannot claim a capital loss from 2019 on your 2020 tax return.  You can amend your 2019 tax return.  To be clear, a reverse split does not create a loss.  For example, if you owned 100 shares of a stock with a cost basis of $1 per share, and then there was 1 for 5 reverse split, you would have 20 shares with a cost basis of $5 each.  You may have reported the wrong cost basis if you didn't use the updated cost basis when you sold it.

 

To amend a 2019 return in TurboTax, see How to amend (change or correct) a return you already filed

1 Replies
Expert Alumni
Feb 24, 2021 8:55:16 PM

No, you cannot claim a capital loss from 2019 on your 2020 tax return.  You can amend your 2019 tax return.  To be clear, a reverse split does not create a loss.  For example, if you owned 100 shares of a stock with a cost basis of $1 per share, and then there was 1 for 5 reverse split, you would have 20 shares with a cost basis of $5 each.  You may have reported the wrong cost basis if you didn't use the updated cost basis when you sold it.

 

To amend a 2019 return in TurboTax, see How to amend (change or correct) a return you already filed