I have a worthless stock and no 1099-B. How do I enter the info about the stock?

[ColeenD3]

You can deduct worthless stock only in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make a company's stock worthless unless there's no hope that the company will pull through.

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.

[JimDenver1]

I have American Depositary Receipts (ADRs) for the underlying Russian stocks. These ADRs are not trading in US for a year while the underlying stock trades in Russia ok. US financial institutions (Citi, BONY, etc) that sponsored there ADRs exited depositary agreements in mid ' 22 and, effectively, abandoned underlying securities. Thus, there is no link between these phantom ADRs and underlying Russian shares. Can I consider these ADRs worthless for tax purposes and write them off  for '22? Brokerage statement shows some of them with N/A in the value column.

[DaveF1006]

 Yes, you may claim a worthless stock by entering this as a stock sale but with a sales price of zero and the word "worthless" in the description of the sale.  Enter the correct cost or basis, date acquired, and December 31 as the date sold. To enter.

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? 
4. If you land on the Here's the investment sales we have so far screen, click Add More Sales.

Then proceed and enter the sale of these worthless stocks as I described in the opening paragraph, 

@JimDenver1 

[laward66]

Does the worthless stock writeoff apply to a stock in an IRA?

[GeorgeM777]

No, realized losses or worthless stock in an IRA are not deductible in contrast to losses or worthless stock in a traditional retail account. The same is true for stock held in a 401(k) account.  However, while losses and/or worthless stock are not deductible in IRAs and 401(k) accounts, neither are capital gains taxed.  

@laward66

[attackmom]

My husband and I both had Roth IRA's through Edward Jones with the only security in each being an illiquid "non-publicly traded limited partnership". After 6 years EJ declared the security an ineligible asset. Our accounts went from being valued (on paper) at $35k to $0. Can I claim this as a long term capital loss?

[RobertB4444]

No.  Activity inside your retirement account isn't reportable for tax purposes.  

Also, it sounds like this was just a paper transfer.  You still own the partnership, it was just removed from your Roth IRA.  So it wouldn't be a actual loss anyway.

@attackmom 

[attackmom]

Oh it's a loss alright, especially after the SEC ruling and subsequent lawsuits. Among many other illegal activities, Scamderi had lowly investors like myself invest through Roths to cover the fact that they were taking on well over the limit of 35 non-accredited investors but thanks anyway.