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April 8, 2023
Question

FTX.US - Cash Deposited with Interest- no 1099

  • April 8, 2023
  • 1 reply
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How do I write off the entire amount of money?  I had cash and interest in 2022.  I received no 1099.

    1 reply

    April 8, 2023

    You have to enter as a worthless investment sale.  If you own securities, including stocks, and they become totally worthless, you have a capital loss but not a deduction for bad debt.  

     

    The sales price would be zero and the cost basis would by what you actually paid for the stock.  You should use the description as 'Worthless FTX.US' (example).

     

    To enter worthless stock as investment sales:

    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?
      • If you land on the Here's the investment sales we have so far screen, click Add More Sales.
    4. Answer No to the 1099-B question.
    5. On the next screen, select the type of sale you had (stock, second home, collectible, land etc.) and click Continue.
    6. Continue following the onscreen instructions to enter the sale.