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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:
  1. Go to the
    B&D
     screen or the
    Broker
     screen in the
    Income
     folder. Only use the
    Broker
     screen if you're entering a consolidated broker statement.
  2. On the
    B&D
     screen, open the
    Schedule for detail
     statement window. On the
    Broker
     screen, open the
    Proceeds
     statement window.
  3. Select a code in the
    TSJ
     field. On the
    Broker
     screen, close the statement window and code the entire screen to
    TSJ
    .
  4. Select a code in the
    8949 Box
     field.
  5. Select a code in the
    Type
     field.
  6. Complete the
    Desc
     field.
  7. Enter
    Wrthlss
     in the
    Date Sold
     field.
  8. Complete the
    Sales Price
     and
    Cost/Basis
     fields.
  9. UltraTax CS defaults to short-term treatment when you enter
    Wrthlss
     in the
    Date Sold
     field and the
    Date Acq’d
     field has a date in the same tax year. You can change the holding period to long term by using the
    Force
     field.
  10. Use other fields in this statement as necessary for your client, or to get a specific result on Form 8949.

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