Question

Lost half of stock buy in with non-compete

Forum|Forum|5 years ago
April 27, 2021
1 reply
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I bought shares of my company last year ($50k) and decided to leave that company to work at a different employer in town. By breaking the company’s non-compete I will lose half of my stock buy in ($25k). I will get the $ owed to me paid out over the next 3 years. Is that loss considered a capital loss on last years taxes? How would I report that on TurboTax?

T

ThomasM125

Since you have a loss, you would report it in 2020, since that is when it was sustained. You report the investment sale in TurboTax by using these steps:

Income and expenses
Investment Income
Stocks, Mutual Funds, Bonds and Other
Indicate that you don't have a form 1099-B and report the sale in summary form, entering the sales proceeds, cost and date acquired and sold

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