topic Can worthless stocks be used to offset stock gains? I do not have a 1099B showing a "sale". in Investors & landlords

Can worthless stocks be used to offset stock gains? I do not have a 1099B showing a "sale".

hsu-francis — Mon, 13 Apr 2020 16:26:47 GMT

Re: Can worthless stocks be used to offset stock gains? I do not have a 1099B showing a "sale".

MayaD — Mon, 13 Apr 2020 16:51:42 GMT

Yes, report capital losses on Form 8949, Form 1040 and Schedule D. Prepare documentation that proves the stock is worthless and establishes the approximate date on which it became worthless. You don't have to submit this documentation with your tax return, but you will need it if the IRS audits you.

Re: Can worthless stocks be used to offset stock gains? I do not have a 1099B showing a "sale".

fanfare — Mon, 13 Apr 2020 17:38:02 GMT

you can do this only in the year the stock actually became worthless.

If you can get the broker to remove the stock from your account, that would help although it is not exactly kosher to use that event, you will have a 1099-B.