topic Re: Worthless stock in Get your taxes done using TurboTax

I have a worthless stock and no 1099-B. How do I enter the info about the stock?

cjliesenfelt — Mon, 15 Mar 2021 20:10:48 GMT

Re: I have a worthless stock and no 1099-B. How do I enter the info about the stock?

ColeenD3 — Mon, 15 Mar 2021 20:23:43 GMT

You can deduct worthless stock only in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make a company's stock worthless unless there's no hope that the company will pull through.

Enter a worthless stock like any stock sale but with a sales price of zero and the word worthless in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.

Worthless stock

JimDenver1 — Wed, 15 Feb 2023 04:36:47 GMT

I have American Depositary Receipts (ADRs) for the underlying Russian stocks. These ADRs are not trading in US for a year while the underlying stock trades in Russia ok. US financial institutions (Citi, BONY, etc) that sponsored there ADRs exited depositary agreements in mid ' 22 and, effectively, abandoned underlying securities. Thus, there is no link between these phantom ADRs and underlying Russian shares. Can I consider these ADRs worthless for tax purposes and write them off for '22? Brokerage statement shows some of them with N/A in the value column.

Re: Worthless stock

DaveF1006 — Wed, 15 Feb 2023 14:07:23 GMT

Yes, you may claim a worthless stock by entering this as a stock sale but with a sales price of zero and the word "worthless" in the description of the sale. Enter the correct cost or basis, date acquired, and December 31 as the date sold. To enter.

Open (continue) your return in TurboTax.
In the search box, search for investment sales then click the "Jump to" link in the search results.
Answer Yes to the question Did you sell any investments?
If you land on the Here's the investment sales we have so far screen, click Add More Sales.

Then proceed and enter the sale of these worthless stocks as I described in the opening paragraph,

@JimDenver1

Re: Worthless stock

laward66 — Fri, 17 Feb 2023 12:57:10 GMT

Does the worthless stock writeoff apply to a stock in an IRA?

Re: Worthless stock

GeorgeM777 — Fri, 17 Feb 2023 15:36:23 GMT

No, realized losses or worthless stock in an IRA are not deductible in contrast to losses or worthless stock in a traditional retail account. The same is true for stock held in a 401(k) account. However, while losses and/or worthless stock are not deductible in IRAs and 401(k) accounts, neither are capital gains taxed.

@laward66

Re: Worthless stock

attackmom — Sun, 07 Apr 2024 21:44:11 GMT

My husband and I both had Roth IRA's through Edward Jones with the only security in each being an illiquid "non-publicly traded limited partnership". After 6 years EJ declared the security an ineligible asset. Our accounts went from being valued (on paper) at $35k to $0. Can I claim this as a long term capital loss?

Re: Worthless stock

RobertB4444 — Mon, 08 Apr 2024 15:31:32 GMT

No. Activity inside your retirement account isn't reportable for tax purposes.

Also, it sounds like this was just a paper transfer. You still own the partnership, it was just removed from your Roth IRA. So it wouldn't be a actual loss anyway.

@attackmom

Re: Worthless stock

attackmom — Mon, 08 Apr 2024 20:42:00 GMT

Oh it's a loss alright, especially after the SEC ruling and subsequent lawsuits. Among many other illegal activities, Scamderi had lowly investors like myself invest through Roths to cover the fact that they were taking on well over the limit of 35 non-accredited investors but thanks anyway.