Worthless Stock - bad debt deduction?
Answer:
If you own securities and they become totally worthless, you can take a deduction for a loss, but not as a bad debt.
The worthless securities are treated as capital assets sold on the last day of the tax year.
Report worthless securities on IRS Form 8949 and Schedule D.
The worthless securities are treated as capital assets sold on the last day of the tax year.
Report worthless securities on IRS Form 8949 and Schedule D.
