Report worthless securities on Form 8949
Per IRS rules, when investment income and expenses, stocks, stock rights, and bonds became worthless during the tax year, they're treated as sold on the last day of the tax year.
Follow these steps to report worthless securities on Form 949:
- Go to theB&Dscreen or theBrokerscreen in theIncomefolder. Only use theBrokerscreen if you're entering a consolidated broker statement.
- On theB&Dscreen, open theSchedule for detailstatement window. On theBrokerscreen, open theProceedsstatement window.
- Select a code in theTSJfield. On theBrokerscreen, close the statement window and code the entire screen toTSJ.
- Select a code in the8949 Boxfield.
- Select a code in theTypefield.
- Complete theDescfield.
- EnterWrthlssin theDate Soldfield.
- Complete theSales PriceandCost/Basisfields.
- UltraTax CS defaults to short-term treatment when you enterWrthlssin theDate Soldfield and theDate Acq’dfield has a date in the same tax year. You can change the holding period to long term by using theForcefield.
- Use other fields in this statement as necessary for your client, or to get a specific result on Form 8949.
