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Capital Loss

Forum|Forum|3 years ago
November 16, 2022
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I bought shares in a company over a decade ago. There have never been any yearly reports. I'm assuming the company was a scam. How do I go about writing this investment off as a Capital Loss?

Best answer by rferreira 1

If you know for a fact that the stocks are worthless, you can claim them as such on your Schedule D. Enter the data, including date of purchase (if known) and the amount you paid for them. Then enter a date this year and mark them as "Worthless". It will register as $0.00 and you can write off the loss in increments of $3,000.00 per year if you have no capital gains to offset the loss. If you lost $10,000.00 with no gains, then you get $3,000.00 write off this year and continue until the balance is used up. If you have a capital gain of $12,000.00, you apply the $10,000.00 loss against that and only pay capital gains tax on the remaining $2,000.00

rferreira 1Answer

If you know for a fact that the stocks are worthless, you can claim them as such on your Schedule D. Enter the data, including date of purchase (if known) and the amount you paid for them. Then enter a date this year and mark them as "Worthless". It will register as $0.00 and you can write off the loss in increments of $3,000.00 per year if you have no capital gains to offset the loss. If you lost $10,000.00 with no gains, then you get $3,000.00 write off this year and continue until the balance is used up. If you have a capital gain of $12,000.00, you apply the $10,000.00 loss against that and only pay capital gains tax on the remaining $2,000.00

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D

drc845443

Hello there,

If you are convinced that the investment is a scam and that the shares are now worthless, you can report the loss in the "Investment Income Section" in TurboTax.

The link below explains the steps you need to take in TurboTax:

https://ttlc.intuit.com/community/taxes/discussion/how-do-i-enter-long-term-worthless-stock-losses-without-a-1099-b/00/1458645

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