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How do I report a bankruptcy settlement for a worthless investment. I received a 1099-DIV form. How do I report the loss?


The BIDaWIZ Team's Answer:

You would report a worthless investment on Form 8949, which will flow to your Schedule D of your form 1040. You will need to indicate on the form that the investment was worthless to claim the capital loss which offsets capital gains. This can offset up to $3,000 of ordinary income and be carried forward to future years if the losses have not been fully exhausted.

The BIDaWIZ Team



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