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how to record a section 1244 stock loss in turbo tax deluxe

Hi,

I need to record a section 1244 stock loss. Can someone describe the appropriate method for capturing it in Turbotax deluxe?

Thanks

Best answer by Anonymous_

In order to deduct the Section 1244 loss as an ordinary loss, you need to enter the transaction under Sale of Business Property in the program.

Employee

In order to deduct the Section 1244 loss as an ordinary loss, you need to enter the transaction under Sale of Business Property in the program.

The business folded, so there was no sale of stock. Does that matter?

Employee

@barryesc wrote:

The business folded, so there was no sale of stock. Does that matter?

It does not matter, assuming the stock is worthless.

Employee

Are you using the Online Deluxe program? You need Online Premier to enter sales. The Desktop Deluxe has all the forms.

it wasnt a sale, the business folded so the the stock lost all value. Does that impact how i treat it?

Treat it like a total loss of the amount invested and fees.

2 replies