In 2019 a stock I owned did a reverse split, and I lost $1K towards capital loss. I didn't realize this happened until 2020. Should I try to revise my 2019 return?

Forum|Forum|5 years ago
February 25, 2021
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Stock: OPTT

Can I uses this capital loss in my 2020 taxes?

TurboTax Premier Online

Best answer by DavidD66

No, you cannot claim a capital loss from 2019 on your 2020 tax return. You can amend your 2019 tax return. To be clear, a reverse split does not create a loss. For example, if you owned 100 shares of a stock with a cost basis of $1 per share, and then there was 1 for 5 reverse split, you would have 20 shares with a cost basis of $5 each. You may have reported the wrong cost basis if you didn't use the updated cost basis when you sold it.

To amend a 2019 return in TurboTax, see How to amend (change or correct) a return you already filed

D

DavidD66Answer

No, you cannot claim a capital loss from 2019 on your 2020 tax return. You can amend your 2019 tax return. To be clear, a reverse split does not create a loss. For example, if you owned 100 shares of a stock with a cost basis of $1 per share, and then there was 1 for 5 reverse split, you would have 20 shares with a cost basis of $5 each. You may have reported the wrong cost basis if you didn't use the updated cost basis when you sold it.

To amend a 2019 return in TurboTax, see How to amend (change or correct) a return you already filed

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