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New Member
posted Mar 18, 2022 4:18:24 PM

Received no form 1099 with cash distribution from a creditor trust created to recover assets of company that went bankrupt for fraud. How do I handle this distribution?

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Expert Alumni
Mar 18, 2022 5:10:56 PM

If this was for an investment, you will enter as worthless stock on Form 4797.  See How do I deduct worthless stock? - TurboTax.

 

Stocks that become wholly worthless during the tax year are treated as though they were sold on the last day of the year. Worthless stock includes abandoned stock, permanently surrendered for no consideration.  You can enter the amount you received as he proceeds.