You report a worthless stock due to bankruptcy the same way you would if you had a Form 1099-B. To do so in TurboTax Online: Type "1099B" in to Search and hit enter Click on "Jump to 1099b" Answer Yes to "Did you have investment income in 2024?" (If you've already entered investments, click on "Add investments") Click through the program until you get to "Let's import your tax info?", and click on "Enter a different way". Click to highlight the box with "Stocks, Bonds, Mutual Funds", then click on Continue. Enter something for "Bank or Brokerage" and click on Continue. Answer No to the Employee stock question. Continue through screens until you come to the page with Now, enter one sale on your Foreign 1099‑B Enter the information for your bankrupt stock. For the date sold, enter the date of bankruptcy, or the date you learned of bankruptcy if later.

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santiago-gonzalez-tamu

Question

how do report a long term loss on a stock that went bankrupt?

Forum|Forum|1 year ago
March 11, 2025
1 reply
0 views

without a 1099-b

DavidD66

You report a worthless stock due to bankruptcy the same way you would if you had a Form 1099-B. To do so in TurboTax Online:

Type "1099B" in to Search and hit enter
Click on "Jump to 1099b"
Answer Yes to "Did you have investment income in 2024?" (If you've already entered investments, click on "Add investments")
Click through the program until you get to "Let's import your tax info?", and click on "Enter a different way".
Click to highlight the box with "Stocks, Bonds, Mutual Funds", then click on Continue.
Enter something for "Bank or Brokerage" and click on Continue.
Answer No to the Employee stock question.
Continue through screens until you come to the page with Now, enter one sale on your Foreign 1099‑B
Enter the information for your bankrupt stock.
For the date sold, enter the date of bankruptcy, or the date you learned of bankruptcy if later.

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santiago-gonzalez-tamuAuthor

Thanks! Is same process the same if the stocks were acquired through an Employee Stock Purchase Plan (ESPP)?

ThomasM125

Yes, but with employee stock it is possible the discount you received when you acquired it was reported on your W-2 form in that year. If so, you would add that to your cost basis which would increase your capital loss. In most instances the discount is reflected on your W-2 in the year you sell the stock, however. In that case you don't need to bother with it, since the stock was never sold.

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