Can I file Form 8949 for a loss from 2017?

Forum|Forum|2 years ago
April 7, 2024
1 reply
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In 2016 my husband and I received a letter from Edward Jones stating they could no longer hold Scuderi Group LLC because it was an ineligible asset. Our accounts were valued, on paper, at $35k each. They susequently sent up both Form 5498's showing all zeros. Can I finally file form 8949 and take a loss on this?

TurboTax Online

JamesG1

Your investment may qualify for treatment as a nonbusiness bad debt. See discussion here.

The unpaid debt must be 100% worthless before you can deduct it. There must be no chance that you will recover the amount of the investment. Make sure that you retain all paperwork to substantiate the loss.

To report In TurboTax Online Premium,

Enter 'nonbusiness bad debt' in the Search microscope in the upper right hand corner of the screen. Enter.
Select 'Jump to nonbusiness bad debt'.
Then follow the directions.

The loss will be reported as a short-term capital loss, so you must first deduct it from any short-term capital gains you have before deducting it from long-term capital gains. Finally, you can deduct up to $3,000 of any remaining balance from other income. If a balance still remains, you can carry it over to subsequent years.

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