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You need to indicate that the passive activity dissolved in 2019, and this will be the last year of reporting. Did you receive Schedule K-1? Was this a passive loss from a rental property? Be certain that the carryover losses from prior years are reported. If you used TurboTax in the past, these losses should carry forward automatically from year-to-year. If not, you will need to indicate the amount of carryover losses from passive activities.
I received a letter in 2020 that my investment is now worthless. I had previously received K-1's with tax year 2018 being the last one received. The letter said no K-1 will be issued for the 2020 tax year. where do I enter this loss (passive) in Turbo tax. I originally purchased my interest in the company in 2006. Do I enter this in the K-1 section or stock loss in 2020? As I did not and will not receive a K-1 for 2020, the section of TurboTax for K-1's only allows entries if I received a K-1. Any help is appreciated.
Your business interest will be treated the same as worthless stock. When it becomes totally worthless you have a capital loss. For the entry, see How do I deduct worthless stock?
Treat worthless securities as though they were capital assets sold or exchanged on the last day of the tax year.
Excellent !
That seems logical.
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