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 is 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.
To enter worthless stock as
investment sales:
- Open (continue) your return in TurboTax.
- In the
search box, search for investment sales then
click the "Jump to" link in the search results.
- Answer Yes to the question Did you sell any investments?
- If you
land on the Here's the investment sales we have
so far screen, click Add More Sales.
Answer No to the 1099-B question.
On the
next screen, select the type of sale you had (second home, collectible,
land etc.) and click Continue.
Continue
following the onscreen instructions to enter the sale.