Sale of stock. No 1099s

[bmcgonig]

I bought some shares in a UK company in a private sale years ago 2011. The company just got bought out for next to nothing (oops) so I have a good size loss that I want to declare on my 2024 taxes.

So no 1099s on any official documents for either the original buy or this buyout. Not even a brokerage trade and I held paper stock all this time.

I have a paper trail of a wire transfer to the CEO of the company originally. Many emails. And for the sale I just have a deposit into my bank account and a letter from a holding company in UK.

This is all legit but I want to figure out how to tell the IRS without flags being raised. The loss is about 100k which being retired is much more than my annual income.

So the question is:

I know I can just file this in Turbo tax with my regular returns but should I send in a bunch of documentation explaining the buy-sell with my tax returns? Or just efile as usual.

Thanks!

 

[cathy63]

Were you required to file Form 8938 and have you been filing it with your tax return every year? If not, then definitely do not send the IRS any notes or info that will help them figure out that this was a foreign investment. The penalties for failing to file an 8938 are huge and you do not want to open that can of worms.

I would just put this on an 8949 and Schedule D as a sale for which no 1099-B was issued. $100K is a large number to you, but it's really not that large or remarkable to the IRS. I do a few returns for people who are still carrying over huge capital losses from over ten years ago due to a local Ponzi scheme and it's never been a concern on their tax returns.

 

[audreyh1]

The 1099 won’t be issued until 2025? But since it was in the UK who knows.

 

[bmcgonig]

Were you required to file Form 8938 and have you been filing it with your tax return every year? If not, then definitely do not send the IRS any notes or info that will help them figure out that this was a foreign investment. The penalties for failing to file an 8938 are huge and you do not want to open that can of worms.

I would just put this on an 8949 and Schedule D as a sale for which no 1099-B was issued. $100K is a large number to you, but it's really not that large or remarkable to the IRS. I do a few returns for people who are still carrying over huge capital losses from over ten years ago due to a local Ponzi scheme and it's never been a concern on their tax returns.

Thanks Cathy. That’s very helpful.

 

[bmcgonig]

The 1099 won’t be issued until 2025? But since it was in the UK who knows.

No 1099 at all.