How do I enter long term worthless stock losses wi...
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Level 2

How do I enter long term worthless stock losses without a 1099-B?

 
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Expert Alumni

How do I enter long term worthless stock losses without a 1099-B?

You can deduct worthless stock only in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make a company's stock worthless unless there is no hope that the company will pull through.

 

Enter a worthless stock like any stock sale but with a sales price of zero and the word "worthless" in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.

 

To enter worthless stock as investment sales:

  1. Open (continue) your return in TurboTax.
  2. In the search box, search for investment sales then click the "Jump to" link in the search results.
  3. Answer Yes to the question Did you sell any investments?
    • If you land on the Here's the investment sales we have so far screen, click Add More Sales.
  4. Answer No to the 1099-B question.
  5. On the next screen, select the type of sale you had (stock, second home, collectible, land etc.) and click Continue.
  6. Continue following the onscreen instructions to enter the sale.

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Level 1

How do I enter long term worthless stock losses without a 1099-B?

This was helpful, however TurboTax still wants an image or a paper copy of the 1099-B form after the loss is submitted in this section. Speaking with my Brokerage they clarified that only a sale of stock would have triggered them to submit a 1099-B. If the stock went bankrupt and is no longer publicly traded, they will not send you a 1099-B. They indicated the best way to document the loss is to use the quarterly statements. Will TurboTax still want me to track down a non-existent 1099-B? Or can I submit as is with no form?

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Level 1

How do I enter long term worthless stock losses without a 1099-B?

Should have mentioned, these are the options. Which one should I pick? I don't have a 1099-B at all!

 

You'll need to mail a paper copy to the IRS if you don't upload it.
If you plan on uploading your 1099-B later, come back and edit this sale whenever you're ready.
-I'm going to mail a paper copy of my 1099-B to the IRS
-I'm planning to upload a PDF copy of my 1099-B later
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Expert Alumni

How do I enter long term worthless stock losses without a 1099-B?

The instructions provided earlier by HelenC12 should work for you if you are using the Download/CD version of TurboTax. 

 

In TurboTax Online, you don't get a "Did you get a 1099-B" question.  Instead, when you get to the "Let's import your tax info" screen you should choose I’ll type it in myself in the bottom right.  On the next screen, for the Broker name, type in something descriptive, like “Options” in the box, and leave the account number blank.  Continue on, and you'll get to the screen where you can choose to "Enter sales one by one".  You'll eventually get to the screen where you can enter the sale for which using the choice "....did not receive 1099-B form".

 

Either way, you do not need to attach a 1099-B when you didn't receive one.

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