Question

Paid ordinary income tax on RSUs but then company went out of business

Forum|Forum|2 years ago
April 2, 2024
1 reply
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I was awarded $95,448.20 in RSUs from a publicly traded company and then paid ordinary income tax on my 2022 W-2 for them. The company went out of business in 2023. The shares are obviously valued $0 today. How do I go about capturing this loss? I received no 1099-B from E-Trade since technically the stock was not sold. And when I called them, they were not able to provide me any tax advice.

TurboTax Self Employed Online

T

ThomasM125

You can enter the disposition of the shares in the Investment Income section of TurboTax, then Stocks, Cryptocurrency, Bonds, Mutual Funds , Other. For the category of sale, choose Stocks, Bonds, Mutual Funds. The Program will ask which bank or brokerage the sale was reported from, you can enter "Other" as you don't need to enter an account or ID number. To simplify your entry, you don't need to choose RSU for the type of stock you sold. When you come to the screen that asks for your sales information, enter the sale amount as $0 and the cost equal to the income reported on your W-2 for the stock acquisition.

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