Cost basis for worthless stock deduction when AMT already paid on capital gains at time of option exercise

[arturoramos2]

The following dates and amounts are fictitious but analogous to my situation:

In 2019, I exercised stock options for Company X, but did not sell the stock.

200 shares with exercise price of $1.00 and fair market value of $11.00

This represented $2000 in capital gains for AMT purposes and I paid $400 in AMT capital gains.

Because I have not fallen into AMT since 2019, I have been eligible to recover $100 of the AMT capital gains paid in 2019 over the last four years.

In 2024, Company X declared bankruptcy making the stock worthless.  I am looking to take a worthless stock deduction.

Is my tax basis on those shares $11.00 (the price at which I paid capital gains in 2019) or $1.00 (the exercise price)?

Given these shares are for a private company and I have received no forms from any brokerage, how do I enter this in TurboTax?

[RobertB4444]

Taking a loss on worthless stock is entered into TurboTax or onto schedule D exactly the same as any stock sale.  

You will enter as a sale date the date that you became certain that the stock was worthless.  A lot of times a company starts to go bankrupt but there is still activity there so there is still hope for recovery.  There has to be no hope for recovery for the stock to be rendered worthless.  So the date that you received a letter from an attorney declaring the stock worthless is a good date, etc.

Then you will enter "0" as a sale price.  If you received any portion of the value for the stock at all it needs to be entered here instead of zero.  

Then you will enter what you paid for the stock as your stock basis.  In your instance the basis is the $11 FMV that you were taxed on in 2019.  So you have a loss of the cost of all of those shares at $11 each.  

@arturoramos2