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Where? and How? on Sch D do you report Worthless Stock.

Thanks
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Sadly, I had to do this once (company went bankrupt).

You report it on Schedule D just like any other investment. For the amount you sold it for, write "Worthless", and figure the loss as your entire cost basis. If you purchased the stock more than a year ago, it's a long-term loss, otherwise short-term.

- LoopinFool
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Report Short term on Line 1, Long term on Line 8 of Sch D, whichever applies. In column (c) and (d), write "Worthless." Enter the amount of your loss in parentheses in column (f).

Hope this helps.
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[[Where? and How? on Sch D do you report Worthless Stock. ]]

Read my post on the worthless stock deduction in the Taxes FAQ area. In addition, the instructions for Sch D will give you the information that you need to report the transaction. If you would like additional information on what a worthless stock really is, check out IRS Publication 550 at the IRS web site.

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