Worthless stock
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Can You Write Off Worthless Stock?
Short answer: Yes, stock that becomes totally worthless is treated as sold for $0 on the last day of the year.
You need proof it's worthless, not just down a lot.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B22-00181
low risk
Worthless stock
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Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
Yes, stock that becomes totally worthless is treated as sold for $0 on the last day of the year.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes, stock that becomes totally worthless is treated as sold for $0 on the last day of the year. You need proof it's worthless, not just down a lot.
Category
- Personal Tax Deductions
personal deduction
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losses
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