I exercised my ISOs and filed form 3921 in 2023, my shares worth zero when company was acquired in 2024. How to claim my loss?

sunshineInTheRain · ‎February 25, 2025

In 2023, I exercised my ISOs and filed form 3921

In 2024, the company was acquired for a low price and my shares worth zero. They used SRS Acquiom to close the deal. When I contacted SRS Acquiom, they said since they didnot send out a payment to me, so they won't provide a tax form for me to use.

I was wondering what form I need to fill to claim my loss. The time frame between I exercised my ISOs and they were sold as zero is less than one year, if that matters.

DavidD66 · ‎February 25, 2025

If you did not pay Alternative Minimum Tax as a result of your exercise of Incentive Stock Options (ISOs), then reporting your loss on your company stock is pretty straight forward. You will report the disposition of your "worthless" stock similar to how you would report a sale reported on Form 1099-B. 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 - Do not indicate that this was the sale of employee stock!
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"
Select "Stock (non-employee) for type of investment you sold
Enter the information the acquisition - date of exercise, and exercise price
For date sold or disposed, enter the date the company was sold
Enter $0.00 for proceeds
On the next page, indicate "none of these apply"

Your disposition will be reported on Form 8949, with box C checked, and the loss will flow to Schedule D.

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View solution in original post

DavidD66 · ‎February 25, 2025

If you did not pay Alternative Minimum Tax as a result of your exercise of Incentive Stock Options (ISOs), then reporting your loss on your company stock is pretty straight forward. You will report the disposition of your "worthless" stock similar to how you would report a sale reported on Form 1099-B. 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 - Do not indicate that this was the sale of employee stock!
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"
Select "Stock (non-employee) for type of investment you sold
Enter the information the acquisition - date of exercise, and exercise price
For date sold or disposed, enter the date the company was sold
Enter $0.00 for proceeds
On the next page, indicate "none of these apply"

Your disposition will be reported on Form 8949, with box C checked, and the loss will flow to Schedule D.

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

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I exercised my ISOs and filed form 3921 in 2023, my shares worth zero when company was acquired in 2024. How to claim my loss?