turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Due, Penalties, and Refunds on April 9! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

sts_66
Returning Member

Weird 1099 entries for a BK stock after taxable TDA account transferred to Schwab then to Fidelity last year

This is complicated or very simple - I owned a stock for a bank that was closed by the FDIC in 2010, then it traded OTC as a holding company until 2014, when if was officially delisted and defunct, but it still showed up in my TDA positions list so I was not aware OTC trading had stopped, therefore I never official "sold" it or had it declared abandoned, was just holding it until I needed a tax write off. I used TurboTax deluxe desktop version over the weekend to do my taxes, and after importing my Schwab 1099 that stock shows up as multiple sales on the date that old TDA account officially was transferred to Fidelity:

 

Schwab WHI sale date 7-17-24.jpg

 

 

There are way more transactions that add up to $15k in losses for that stock - obviously I would love to be able to use them, but AFAIK you only have 7 years to amend past tax returns to take losses for a stock that went BK - so why does my Schwab 1099 show the sell date as 7/17/24? For those who have never transferred accounts to another broker, you can't transfer fractional shares so those shares get sold, and it appears Schwab did something similar for this delisted stocks stock. Since I never officially sold them does Schwab "cancelling" that stock give me back that $15k in losses I never took that I can now use as tax write offs? I mean the IRA has no clue I never sold them, and I have paperwork (the 1099) that shows they were sold last year. I have next to zero risk of an audit because I can't work due to health issues and my only income is SSDI, LTD benefits (both non-taxable since I'm not 65 yet), and dividends I get from stocks, plus interest from CDs and Fido's MMF SPAXX - I haven't had to pay taxes since I had to stop working, so I'm tempted to allow TurboTax to claim that capital loss, but the official sell date has me confused.

 

So to summarize, I believe I cannot take the tax loss Turbotax is offering because of the 7 year amended tax return rule and the fact that there was nothing really there for Schwab to sell or a way to sell it, but then again I have paperwork showing the sell date was 7/17/24, so can I carry over that loss or not?

 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question