https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bonds-as/01/2476347#M80941 Mon, 09 Mar 2026 06:10:18 GMT cs21807 2026-03-09T06:10:18Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bonds-as/01/2476347#M80941 Mon, 09 Mar 2026 06:10:18 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bonds-as/01/2476347#M80941 cs21807 2026-03-09T06:10:18Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bon/01/2476417#M80945 <P>Please clarify: Did your wife use a brokerage for the purchase of the bonds? If so, did she receive Form 1099-B?</P> <P>When a company declares bankruptcy, it doesn't make&nbsp;its bonds worthless. Bankruptcy laws govern how a bond issuer goes out of business or attempts to reorganize its finances.</P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P> Sun, 13 Feb 2022 23:58:44 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bon/01/2476417#M80945 FangxiaL 2022-02-13T23:58:44Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bon/01/2476502#M80950 <UL><LI>She did not use a broker, she bought the bonds straight from the company. She recieved paper from the bankruptcy court stating chapter 7 status of the company, with so many creditor no matter how much the bonds remaining value will be (I dont believe there would be any value left) she would lose a lot of money no matter what, so I did not file our tax yet, cause im not sure if the lost could be deducted.</LI></UL> Mon, 14 Feb 2022 00:27:44 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bon/01/2476502#M80950 cs21807 2022-02-14T00:27:44Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bon/01/2476825#M80959 <P>Yes, the loss can be deducted.&nbsp; &nbsp;You would report the loss as worthless security and report it just as you would if you received a 1099-B.&nbsp; To do this here are some steps to enter <STRONG>stock losses due to bankruptcy of company</STRONG></P> <OL> <LI>With your return open, search for <STRONG>worthless stocks</STRONG> in the TurboTax search box.</LI> <LI>Click the <STRONG>Jump to</STRONG> worthless stocks link in the search results.</LI> <LI>Answer <STRONG>Yes</STRONG> to the question <STRONG>Did you sell any investments in 2020?</STRONG>&nbsp;</LI> <LI>Answer <STRONG>No</STRONG> to the 1099-B question.</LI> <LI> <P>On the next screen, select the&nbsp;<STRONG>type of sale</STRONG>&nbsp;you had (stock, second home, collectible, land etc.) and click&nbsp;<STRONG>Continue</STRONG>.</P> </LI> <LI> <P>Continue following the onscreen instructions to&nbsp;<U>enter the sale date of the disposition/bankruptcy/worthless stock, etc.</U></P> </LI> <LI> <P>Enter "<STRONG>0</STRONG>"&nbsp;for the sale price and "<STRONG>worthless</STRONG>" in the description.</P> </LI> </OL> <P><A href="https://ttlc.intuit.com/community/investments/help/how-do-i-deduct-worthless-stock/00/26615" target="_blank">How to Enter Worthless Stock</A></P> Mon, 14 Feb 2022 02:44:18 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-my-wife-has-bought-bonds-to-a-company-that-has-been-bankrupt-can-i-claim-the-loss-on-the-bon/01/2476825#M80959 JillS56 2022-02-14T02:44:18Z