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You enter this as worthless stock. Below is DianeW777 answer from a previous post:
You can report it in the year they are deemed to be completely worthless. This usually happens when a company stops doing business or files bankruptcy. You should be prepared with your proof and retain it in your tax file.
The sales price would be zero and the cost basis would be what you actually paid for the stock and December 31st as the date of sale
To enter worthless stock as investment sales: (You should use the description as 'Worthless'.)
Helpful Information:
didn't your broker include this in their 1099 reporting to you?
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