ANSWERS: 1
  • Worthless securities are treated as being sold on the last day of the tax year. Technically you are supposed to report the loss in the year the stock becomes worthless. If you have a preparer file your taxes, provide the 1979 cost information to the preparer and the loss will be the cost of the securities. If you file your own taxes, do the following: On Form 1040, Schedule D: Line 8 - fill in information for name, date purchased and cost of purchase. Across columns (c) and (d) on that row, enter "WORTHLESS" - and enter the total amount of the loss, in parentheses, in column (f).

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