How I enter the capital loss not reported on 1099-B ?

[user17713644447]

My brokerage firm did not report this capital loss because this was not a sale.

The 2025 TurboTax (Deluxe Desktop) does not provide me the choice to enter capital loss without 1099-B.  The  instructions from the past about "enter loss without 1099-B"  does not work for 2025 turboTax anymore.  Could you help this ? Thank you!

[DianeW777]

It depends. If you have a capital loss carryover from 2024, then you will enter that loss under Investment Income, selecting Capital Loss Carryover.

Please clarify with more detail exactly what this capital loss if from if not a sale and we can provide more direct guidance on how to report it. If you are referring to a worthless security use the instructions below. Make sure it is completely worthless with documentation.

 To enter worthless stock as investment sales: (You should use the description as 'Worthless'.)

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, if it doesn't ask just select the 'Other' box.
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. Sale date should be December 31st.

Helpful Information:

• IRS FAQ -Worthless Security

[user17713644447]

It is not the carryover loss.  It become worthless stock in year 2025.  

"Answer No to the 1099-B question"

It does not provide me the question whether I have 1099-B.  Basically it always assume I have 1099-B. 

The following is the what I did:

First I add the regular investment income reported with 1099-B.   It works perfectly.

Then I try to add this worthless stock.  After I click "Add Investment" and proceed,  I am not asked whether I have 1099-B or not.  Basically I am given the choice to fill or import the investment income reported on 1099-B only.   No matter how I try, I am not able to get the 1099-B question.

[JamesG1 · Accepted solution]

If the stock is worthless, you should be able to report your complete investment in the stock. 

Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. 

A stock may become worthless when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties will not make a company's stock worthless unless there's no hope that the company will survive.  Worthless stock includes abandoned stock, permanently surrendered for no consideration. 

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.  See IRS Publication 550 Investment Income and Expenses, page 54. 

In TurboTax Desktop, follow these steps:  

1. Across the top of the screen, click Federal Taxes.
2. Across the top of the screen, click Wages & Income.
3. Click I’ll choose what I work on.
4. Scroll down to Investment Income.
5. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
6. Click Add investments.
7. On the Let Us Enter Your Bank and Brokerage Tax Documents screen, select Skip import.
8. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
9. At the screen Which bank or brokerage, enter the information.  Click Continue.
10. Do these sales include any employee stock, enter No.
11. Do you have more than three sales, enter No.
12. Do these sales include any other types of investments, enter No.
13. Did you buy every investment listed, enter Yes.  Continue.
14. On the screen Now, choose how to enter your sales, select One by one.  Select Continue.
15. At the screen Look for your sales on your 1099-B, select Continue.
16. You will now be able to enter the worthless security.  Include the word worthless in the Description.  Enter $0 total proceeds (sales) and your cost basis, along with the sales category.  Date of sale will be December 31.  When finished, select Continue.
17. At the screen Let us know if any of these situations apply to this sale, select This was a worthless security.  Select Continue.
18. At the screen Review your sales, select Add another sale as necessary.
19. When completed, close the record and click Continue.

[JamesG1]

If the stock is worthless, you should be able to report your complete investment in the stock.

Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. 

A stock may become worthless when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties will not make a company's stock worthless unless there's no hope that the company will survive.  Worthless stock includes abandoned stock, permanently surrendered for no consideration.

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. 

See IRS Publication 550 Investment Income and Expenses, page 54. 

In TurboTax Desktop, follow these steps:   

1. Across the top of the screen, click Federal Taxes.
2. Across the top of the screen, click Wages & Income.
3. Click I’ll choose what I work on.
4. Scroll down to Investment Income.
5. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
6. Click Add investments.
7. On the Let Us Enter Your Bank and Brokerage Tax Documents screen, select Skip import.
8. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
9. At the screen Which bank or brokerage, enter the information.  Click Continue.
10. Do these sales include any employee stock, enter No.
11. Do you have more than three sales, enter No.
12. Do these sales include any other types of investments, enter No.
13. Did you buy every investment listed, enter Yes.  Continue.
14. On the screen Now, choose how to enter your sales, select One by one.  Select Continue.
15. At the screen Look for your sales on your 1099-B, select Continue.
16. You will now be able to enter the worthless security.  Include the word worthless in the Description.  Enter $0 total proceeds (sales) and your cost basis, along with the sales category.  Date of sale will be December 31.  When finished, select Continue.
17. At the screen Let us know if any of these situations apply to this sale, select This was a worthless security.  Select Continue.
18. At the screen Review your sales, select Add another sale as necessary.
19. When completed, close the record and click Continue.

[user17713644447]

thank you for the help, it works!

Just a note:

"15 At the screen Look for your sales on your 1099-B, select Continue" give the impression that I have to have 1099-B, but it turns out at next step, I can choose "did not receive 1099-B" on the sales section.