ESPP Liquidated

Forum|Forum|1 year ago
March 2, 2025
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Hi, I'm wondering how to calculate my losses for employee stock units I had that are now worthless due to all stock being liquidated during bankruptcy. I received a form from Morgan Stanley that showed the quantity of shares liquidated and what the Purchase Date FMV was when I bought the shares but I think I should be calculating losses off of the Purchase Price (price I bought the shares at). Can someone help advise how to handle?

MAK70

You will enter in TurboTax as Worthless Stock.

To enter worthless stock go to investment sales:

Under Federal Wages& Income, select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) under Investments and Savings.

Did you have investment income in 2024? YES
Let's import your tax info Enter a different way
OK, let's start with one investment type Other Continue
Tell us more about this sale Worthless Stock Continue
Now, enter one sale for WORTHLESS STOCK (Proceeds=0 Date sold or disposed= 12/31/2024)
Let us know if any of these situations apply to this sale This was a worthless security Continue

Unfortunately, your losses may be limited to $3000 for the year (if they are long term capital losses), but you will be able to carryforward any excess loss and deduct in future years.