I downloaded transactions from my broker. It included a company that had gone bankrupt. It downloaded the
Form 8949 Check Box: E
Description (1a): 153 Failco Inc.
date acquired (1b) 11/12/2008
Date of sale/exchange (1c): 08/08/2017
Sales price (1d): 0
Cost or other basis (1e): [blank]
Import code: O
Quantity sold: 153.000
In reading, I have seen other answers that you should enter worthless in the description. I find those answers to be less explicit than I think I need.
So my question is, Do I just enter my basis, and edit the description to be "153 Failco Inc.(worthless)" or to be
"153 Failco Inc.(bankrupt)", or what? I cannnot believe I would just make the description "worthless".
Is there anything else?
I use forms mode, but I expect it would work pretty much the same in step by step.
Worthless stock is a valid description for a stock entry.
You do need to enter the basis you have in the stock and the sales price as zero.
The following information may be helpful in dealing with this issue: