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Yes, you generally can deduct an investment loss. You will enter this as an investment SALE. See the screenshot below.
You can deduct the investment 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 it worthless unless there is no hope that the company will pull through.
Enter a worthless investment 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.
Non-security investment sales like coins, collectibles, timber, land, or a second home are entered as follows:
NOTE: The above entry instructions work for Worthless Stock, also.
Yes, you generally can deduct an investment loss. You will enter this as an investment SALE. See the screenshot below.
You can deduct the investment 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 it worthless unless there is no hope that the company will pull through.
Enter a worthless investment 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.
Non-security investment sales like coins, collectibles, timber, land, or a second home are entered as follows:
NOTE: The above entry instructions work for Worthless Stock, also.
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