What do I do with worthless stock on my 1099, which I already claimed in the past?

[vanilk]

A few penny stocks I purchased circa 2009/10 have gone out of circulation (unable to trade) and I claimed them on my 2013 tax return as worthless stock and took a loss. Last year, my stock broker allowed me to close those positions as worthless. So now, they show up on my 1099 from my stock broker. How do I show them this year, since they're on my 1099, but I already took a loss on in the past?

[KatherineC · Accepted solution]

If you received dividend income from this stock, you would just report that dividend income with all your other dividend income (in total from the brokerage account). 

If you received some type of sale or return of capital, you would enter a cost basis of zero.  You would still report the original date of purchase. 

[vanilk]

I didn't receive any dividend income or return of capital. So, I will report with a cost-basis of zero and sale price of zero, but with original date of purchase. Thanks for your answer Katherine!

[KatherineC]

What is disclosed on your statement?

[vanilk]

Actual cost basis along with purchase date and quantity. If I went with what's on my 1099, I would be claiming a loss, which I already claimed in the past.

[KatherineC]

I was just curious since the broker told you it was worthless in the prior year.  Yes I would report it as you stated above.

[vanilk]

When I took a loss in 2013, I didn't consult with my broker. I explained to my tax consultant at that time that I had these shares that I could not sell and asked what I could do with them. They suggested I take a loss claiming that they are worthless. It was already at least over an year since all of those were out of circulation.

[KatherineC]

That's certainly allowable!

[vanilk]

Ok. Cool. Thanks again for your advice, Katherine!