Where? and How? on Sch D do you report Worthless Stock. Thanks
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
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.
[[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.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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