How do I deduct a loss of the value of a Certificate of Deposit due to escheatment?

[olschumacher]

I inherited several Certificates of Deposit with automatic renewals.  I ignored them for a number of years, and when I tried to collect on them I found they had all been escheated due to lack of communication and were not recoverable.  I would like to claim them as a loss.

[ToddL · Accepted solution]

Enter as a "sale" in the "Stocks, Bonds, Mutual Funds, Other" interview, in the same manner as your would report the disposition of a worthless stock. 

Here are the details of the transaction - No 1099-B received; Cost or Other Basis was the value on the date of death of benefactor; Proceeds were "$0"; Date Purchased was date of death of benefactor; and Date Sold ("disposed of") was the date you determined they had no value.