Please enter this loss in TurboTax just as you would the sale or disposition of other capital assets. It does not matter that you did not receive a For 1099-B from a brokerage. Just be sure that you've kept good tax records of your loss, in case you are ever asked about it or your return is examined. Here's how:
- Choose Personal >> Personal Income, then I’ll Choose What I Work On.
- Investment Income >> Stocks, Mutual Funds >> Start/Update.
- Type of Investment: Everything Else
- Enter a description, Net Proceeds = $0, and date of sale = date of dissolution.
- Acquired: Whatever method
- Cost Basis: your investment
- Date of Acquisition: date you made your investment
TurboTax will calculate the loss on this investment and determine if it was short- or long-term. If you have other capital gains, the loss will offset some or all of the gains. Otherwise, up to $3,000 of the capital loss will go to line 13 of Schedule 1 and will offset other income. The remaining loss over $3,000 will be carried forward each year until used up (applied to capital gains and/or ordinary income).
If you have other questions about this, ask in the comment section below.
