I bought close to 50 shares of a stock for $2000 back in 2018. That stock lost its value by end of the year 2019 to almost $200 (making it a loss of $1800 to me) and then stock did a reverse split giving me 6 shares valued at $200.
What happens to that $1800 loss? Can I claim it this year? The paperwork/statement I received only shows a loss $178. Since I never sold the stock, does the loss carry forward until it's sold?
What you have is an unrealized loss. Once you sell the stock, or if it goes to $0.00, you will have a realized loss that you can use on your tax return to offset other gains or, if no gains then offset ordinary income. FYI, stock splits have not impact on the value of your holdings and they aren't taxable events. It just increases the number of shares you own, but each share is worth less.
What you have is an unrealized loss. Once you sell the stock, or if it goes to $0.00, you will have a realized loss that you can use on your tax return to offset other gains or, if no gains then offset ordinary income. FYI, stock splits have not impact on the value of your holdings and they aren't taxable events. It just increases the number of shares you own, but each share is worth less.