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Level 7

What do I do for a worthless stock downloaded from broker?

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.

Thanks.

1 Best answer

Accepted Solutions
Level 9

What do I do for a worthless stock downloaded from broker?

use your original idea "153 Failco Inc.(worthless)"
You're supposed to enter keyword worthless in proceeds but turbotax won't do that for you.

2 Replies
Level 9

What do I do for a worthless stock downloaded from broker?

use your original idea "153 Failco Inc.(worthless)"
You're supposed to enter keyword worthless in proceeds but turbotax won't do that for you.

Level 1

What do I do for a worthless stock downloaded from broker?

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:

https://ttlc.intuit.com/questions/2899549-how-do-i-deduct-worthless-stock