How do I enter losses with no 1099-B form

[juham2013]

I sold some shares overseas - at a loss - but the broker (custodian located overseas) does not issue any 1099-B forms.  How do I report this?

Sincerely,

Juha

[HelenC12]

You would enter the sold shares as if you had a 1099-B form. You'll be able to select "did not receive 1099-B form".

Here are the steps to enter your investment sale: 

1. Sign into your TurboTax account.
2. Select Pick up where you left off. 
3. Select Federal from the left side menu, then Wages & Income.
4. On the Wages and income screen, scroll down to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) and Edit/Add. 
5. Continue with the onscreen interview and select Okay! on the screen Time to kick off your investments! OR Yes on the screen Did you sell any of these investments? then Continue
   • If you see Your investments and savings or Your investment sales summary, select Add investments or Add more sales
6. When you reach Let's import your tax info screen, select Enter a different way.
7. On the OK, let's start with one investment type screen,  select Stocks, Bonds, Mutual funds and Continue.
8.  On the Which bank or brokerage is on your 1099-B? screen, enter the information and Continue.
9. On the Tell us about the sales on your XXX 1099-B screen, answer No to the first three questions. On the Did you buy every investment listed on your 1099-B? question, answer Yes (if you did buy it) and Continue.
10. When you reach the Now, enter one sale on your XXX 1099-B screen, enter the information. In the Sales section box, you'll be able to select Short-term did not receive 1099-B form or Long-term did not receive 1099-B form.
11. Continue entering the sale of your stock. 

Your total capital gains for the year minus your total capital losses result in a net gain or a net loss.

• You can deduct a net loss of up to $3,000 ($1,500 if married filing separately). Any capital loss you couldn't deduct this year can be carried forward and deducted on future tax returns as a capital loss carryover.

[juham2013]

Hello Helen,

I appreciate your detailed response.

Just wondered why the losses  (about $800) I incurred didn't impact the Federal back taxes at all?  Not particularly wealthy and was expecting those losses would have some effect,  but I assume that some losses are just that,  losses, that end up being out-of-pocket.

JJ

[Vanessa A · Accepted solution]

Yes, you are correct.  Some losses are just losses and you do not get any type of tax break from them.  

Depending on what your taxable income was, if it was already at $0, decreasing your income by another $800 would not have any affect as it was already $0.  You cannot be reimbursed in the way of a refund for your losses.

However, as mentioned above, you can carry forward capital losses if you cannot use them in the current year.  So maybe if you were unable to benefit this year, you could next year.

Also, if the loss was $800, you probably would not see much of a difference.  Depending on your tax bracket, even if it is at the 22% mark, you would only see a benefit of about $18 if your income was reduced by that $800 on this years return. 

[juham2013]

I am using Home & Business version of TT so it is a little difficult to navigate through the interview as what you write are like for the Home version.

JJ

[GeorgeM777 · Accepted solution]

Because you are using TurboTax Home & Business, the navigation steps and screens relating to investment sales are different versus the TurboTax online version. Here are the steps to follow in TurboTax Home & Business.

1. After opening the application, select the Personal tab.
2. Then select the Personal Income tab.
3. You will see two options.  One option will "walk you through everything," the other option allows you to choose what section you want to complete.  Select I'll choose what to work on.
4. On the next screen, scroll down to the category Investment Income.
5. Under Investment Income, select Stocks, Mutual Funds, Bonds, Other.
6. On the next screen, Did you get a 1099-B or a brokerage statement for these sales? select No. 
7. On the screen, Tell us about this sale, you have the option to enter one sale at a time or to report a summary.   You probably want to select entering the sales one at a time because the cost basis for these transactions may not have been reported to the IRS given that the brokerage was located offshore.  
8. Selecting I'll enter one sale at a time results in a drop-down menu where you can enter your trade information.
9. Just continue through the application and when you are done, just repeat the process to enter additional sales.

@juham2013 

[juham2013]

Thank you!