I owned stock in a company that entered into Chapter 11. It was approved by the court and the stock is worthless. How do I handle and can I spread over previous years?

[TomYoung · Accepted solution]

You report your loss in the year it became officially worthless.

Using the "Stocks, Mutual Funds, Bonds, Other" interview you'll tell TT that no 1099-B was received.  You'll enter a "date of sale" of 12/31/2016 and "proceeds" of $0.  You'll tick "worthless security" on the "Do any special situations apply to this sale?" page.

Tom Young

[dballog]

Thanks for the response. Can this loss be spread over previous years?

[TomYoung]

No.