How to write off losses from Russia ETF investment on taxes?

This is actually a complicated situation many investors are facing with Russian securities. The IRS treats worthless securities as capital losses, but the tricky part is determining when (or if) they officially became "worthless" for tax purposes. Since the Moscow exchange suspended trading in many securities and there were sanctions imposed, your ERUS shares aren't technically worthless - they're just currently untradeable. This is why Vanguard hasn't included them on your 1099-B. In tax terms, there hasn't been a "realization event" yet (like a sale or official worthlessness determination). You have a couple options: 1) Wait for an official determination or for Vanguard to issue corrected tax forms, or 2) You could potentially claim a worthless security deduction under Section 165(g) of the tax code if you can document the securities are genuinely worthless with no reasonable hope of recovery. The safest approach is waiting for more guidance from Vanguard or official announcements regarding the ETF's status. Claiming the loss prematurely could result in issues if the securities ever regain value.

I was in the exact same situation with about $12k in Russian ETFs that basically vanished. After tons of research and getting nowhere with my broker, I discovered taxr.ai (https://taxr.ai) which helped me figure out exactly how to document and claim the loss. Their system let me upload my statements and the sparse communications from my broker about the suspended trading. They then provided me with a detailed analysis of how to properly document the loss and the specific IRS guidelines that applied to my situation. They even generated the documentation I needed to submit with my return to support claiming these as worthless securities. The most valuable part was they highlighted the specific section of the tax code that applied to my situation and gave me everything I needed to properly report it - something none of the regular tax prep software could handle.

I wanted to follow up on my skeptical comment earlier. I actually decided to try taxr.ai with my own Russian investment situation and I'm genuinely surprised by how helpful it was. They provided me with a comprehensive analysis referencing IRS Revenue Ruling 90-49 and several tax court cases that established precedent for claiming losses on securities that remain in limbo due to government actions. What convinced me was their detailed explanation of the "closed and completed transaction" doctrine as it applies to Russian securities under sanctions. They didn't just tell me to claim it as worthless - they helped me properly document my reasonable abandonment of the investment with the right forms and supporting evidence. This is definitely not the same as the generic advice I got from my regular tax person.

After dealing with a similar situation with Russian securities and getting nowhere with endless calls to my broker and the IRS, I finally used Claimyr (https://claimyr.com) to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c It was amazing to finally speak to someone at the IRS who could give me official guidance. The agent confirmed that I could claim a worthless security deduction in the current tax year if I had a reasonable basis for determining the securities had no value, even without official confirmation from my broker. The call saved me hours of frustration and uncertainty, and I was able to get specific instructions on how to document the loss on my return. Really worth it after the months of getting nowhere with automated phone systems.

I need to eat my words from my previous comment. After being at my wit's end with trying to reach the IRS about my Russian ETF losses, I decided to try Claimyr despite my skepticism. Within about 50 minutes (while I was doing other things), I got a call connecting me directly to an IRS agent. The agent was actually super helpful with my Russian securities question. She confirmed that I could claim them as worthless under Section 165(g) if I could document that they had no current market value and no reasonable prospect of regaining value. She also advised me to include a detailed statement with my return explaining the situation and referencing the ongoing sanctions. This saved me from potentially making a costly mistake on my taxes. I'm still shocked at how well it worked after weeks of failed attempts on my own.

For what it's worth, I spoke with my CPA about this exact situation with Russian ETFs, and he suggested filing Form 8949 with the appropriate adjustment code to report the loss. In my case, we used code C (for sales not reported on 1099-B) and included a detailed explanation statement. The key was documenting that the securities were effectively worthless due to sanctions and the indefinite suspension of trading. My CPA said it's similar to how worthless securities from bankrupt companies are treated - you don't always get a 1099-B, but you can still claim the loss with proper documentation.

Has anyone tried reaching out to iShares directly about this? I emailed their investor relations department about a similar situation with a different Russian fund, and they eventually sent me a letter confirming the fund was "indefinitely suspended with no current market value" which my tax preparer said was sufficient documentation for claiming a loss.

This is incredibly helpful information, everyone! I'm in a similar situation with about $7,200 in ERUS that's been stuck since the sanctions hit. Reading through all these responses, it sounds like there are actually several viable approaches to handling this. The most encouraging thing is hearing from multiple people who've successfully claimed these losses using different methods - whether through direct IRS guidance, CPA assistance, or fund company documentation. It's clear that while the brokerages haven't been helpful, there are legitimate ways to handle this situation. I think I'm going to try the BlackRock route first since that seems like the most straightforward way to get official documentation. If that doesn't work out, I'll consider some of the other services mentioned here. Has anyone had success with other Russian ETFs besides ERUS, or is the situation pretty similar across all of them? Thanks again for sharing your experiences - this has been way more helpful than anything I've found elsewhere!

I'm dealing with a similar situation with VanEck's RSX fund - about $4,800 that's been in limbo for over a year now. What's frustrating is that different brokers seem to be handling this differently. My friend had ERUS through Fidelity and they actually received some guidance last year, while my Schwab account has been radio silent. One thing I discovered through my research is that the IRS has actually addressed similar situations in the past with other sanctioned countries. There are precedents from Iranian and other blocked securities where taxpayers were able to claim losses even without formal broker reporting. The key seems to be establishing that you've abandoned the investment with no reasonable expectation of recovery. I'm planning to document everything thoroughly - screenshots of the suspended trading status, news articles about the sanctions, and any broker communications (even if they're not helpful). My understanding is that as long as you can demonstrate you made a reasonable determination that the securities are worthless, you should be able to claim the loss. The biggest challenge is that most tax preparers haven't dealt with this specific situation before, so they're hesitant to take a position. But based on what I'm reading here, it sounds like there are legitimate pathways forward if you do your homework and document properly.

This thread has been incredibly helpful - I'm dealing with about $6,300 in ERUS that's been stuck since the sanctions hit. What I find most encouraging is seeing multiple people successfully navigate this situation using different approaches. One additional resource I discovered is IRS Publication 550, which covers investment income and expenses. Section on "Worthless Securities" specifically addresses situations where securities become worthless due to circumstances beyond normal market forces. It mentions that you can claim a loss when securities become "completely worthless" and states that government actions preventing trading can qualify. The publication also clarifies that you don't need to wait for an official determination from your broker - you can make your own reasonable determination based on available facts. This seems to support what several people here have done successfully. I'm planning to combine approaches: first try getting documentation from BlackRock like Oliver suggested, then use that along with IRS Publication 550 guidelines to support my position. The key seems to be having multiple sources of documentation rather than relying on just one approach. Thanks everyone for sharing your experiences - this is exactly the kind of real-world guidance that's been impossible to find elsewhere!

I'm in the exact same boat with about $8,400 in ERUS that's been frozen since the sanctions hit. This thread has been incredibly eye-opening - I had no idea there were so many different approaches to handling this situation. What's really encouraging is seeing multiple people successfully claim these losses through different methods. I've been stuck in analysis paralysis for months, not knowing whether to wait it out or take action. The consensus here seems to be that waiting indefinitely isn't necessary if you can properly document your position. I think I'm going to try a combination approach based on what I've read here: first contact BlackRock for official documentation, then review IRS Publication 550 that Jasmine mentioned, and if needed, use one of the services mentioned to get direct IRS guidance. The key seems to be having multiple sources of support rather than relying on just one method. One question for those who've successfully claimed these losses - did you face any pushback during filing, or did your returns go through without issues? I'm wondering if the IRS is seeing enough of these cases now that they're becoming more routine to process. Thanks to everyone who shared their experiences - this is the most practical guidance I've found anywhere on this frustrating situation!

This thread has been incredibly informative! I'm dealing with about $3,800 in ERUS that's been stuck since the sanctions, and I was getting nowhere with my broker. Reading through everyone's experiences has given me hope that there are legitimate ways to handle this. What strikes me most is how many different successful approaches people have used - from getting BlackRock documentation to using IRS Publication 550 guidelines to getting direct IRS guidance through services like Claimyr. It shows there isn't just one "right" way to handle this unusual situation. I'm particularly encouraged by The Boss's update about their return being accepted without issues. That suggests the IRS is becoming more familiar with these types of claims and processing them routinely when properly documented. My plan is to start with contacting BlackRock for official documentation about ERUS being indefinitely suspended, then use that along with Publication 550 as regulatory backing. If I need additional support, I might try one of the services mentioned to get direct IRS guidance. One thing I'm curious about - for those who've filed successfully, did you use any specific language or forms beyond the standard Schedule D and Form 8949? I want to make sure I'm documenting this properly to avoid any potential issues down the road. Thanks again to everyone for sharing your real-world experiences. This is exactly the kind of practical guidance that's been impossible to find through traditional tax resources!

I'm dealing with a very similar situation - about $11,200 in ERUS that's been completely inaccessible since the sanctions hit. This thread has been incredibly valuable because I've been getting absolutely nowhere with my broker (E*TRADE) who keeps telling me to "wait for guidance" that never materializes. Reading through everyone's experiences, I'm struck by how many people have successfully navigated this using different approaches. The combination of BlackRock documentation, IRS Publication 550 references, and proper Form 8949 reporting seems to be a winning formula based on what I'm seeing here. One additional point I'd add from my research - I found that IRS Revenue Ruling 2009-9 also provides some helpful guidance on determining when securities can be considered worthless due to external circumstances beyond normal market conditions. The ruling specifically mentions that government actions that prevent normal trading can qualify for worthless security treatment. I'm planning to pursue the BlackRock documentation route first, then combine it with the Publication 550 and Revenue Ruling 2009-9 references when filing. The key seems to be building a strong documentation case rather than relying on any single source. Has anyone who's successfully claimed these losses faced any follow-up questions from the IRS, or have the returns generally been processed smoothly when properly documented? I'm optimistic based on what I'm reading here, but want to be prepared for any potential issues. Thanks to everyone for sharing your real experiences - this is exactly the kind of practical guidance that's been impossible to find through normal tax resources!

I'm new to this community but found this thread while researching the exact same issue - I have about $6,800 in ERUS that's been completely frozen since the sanctions. Reading through everyone's experiences has been incredibly enlightening and gives me hope that there are legitimate paths forward. What I find most valuable here is the combination of different successful approaches people have used. The BlackRock documentation method that Oliver mentioned seems particularly promising, and the IRS Publication 550 reference that Jasmine shared provides the regulatory backing that makes me feel more confident about taking action. I'm planning to start by calling BlackRock at the number Oliver provided (1-800-474-2737) to get official documentation about ERUS being indefinitely suspended. Then I'll use that along with the Publication 550 guidelines and Revenue Ruling 2009-9 that Ethan mentioned to build a solid case for claiming the loss. One thing I'm wondering - for those who've successfully filed, did you include any specific explanatory statement with your return beyond what goes on Form 8949? I want to make sure I'm being thorough in documenting the rationale for claiming this as a worthless security. The broker situation is so frustrating - mine (Merrill) has been equally unhelpful with the same "wait for guidance" response. At least now I know I'm not alone in this situation and there are proven approaches that work. Thanks to everyone for sharing their real-world experiences!

I'm in a very similar situation with about $8,100 in ERUS that's been stuck since the sanctions hit. This entire thread has been incredibly helpful - I've learned more here than from months of trying to get guidance from my broker or tax professionals. What really gives me confidence is seeing so many people successfully claim these losses using well-documented approaches. The combination of BlackRock documentation, IRS Publication 550, and Revenue Ruling 2009-9 that people have mentioned creates a solid foundation for treating these as worthless securities. I called BlackRock yesterday using the number Oliver provided (1-800-474-2737) and after being transferred twice, I spoke with someone who confirmed they could send me an official statement about ERUS being "indefinitely suspended with no current trading mechanism." They said it would take 2-3 weeks to receive by mail, but it should contain the language needed to support a worthless security claim. One thing I'd add for anyone else going this route - when you call BlackRock, make sure to specifically mention you need documentation for tax purposes regarding the worthless security deduction. The representative seemed familiar with these requests and knew exactly what type of statement to provide. I'm planning to file once I receive the BlackRock documentation, using Form 8949 with code C and a detailed explanatory statement referencing all the regulatory support mentioned in this thread. Thanks to everyone who shared their experiences - this community provided better guidance than any professional resource I found!

I'm dealing with the exact same situation with about $5,800 in ERUS that's been completely inaccessible since the sanctions hit. This thread has been absolutely invaluable - I've gotten more practical guidance here than from countless calls to my broker (Charles Schwab) who keeps giving me the same unhelpful "we're waiting for guidance" response. What really stands out to me is how many people have successfully navigated this using well-documented approaches. The combination of getting official documentation from BlackRock, referencing IRS Publication 550 and Revenue Ruling 2009-9, and properly filing with Form 8949 seems to create a solid foundation for claiming these as worthless securities. Mae's recent success with getting BlackRock documentation is particularly encouraging - the fact that they're familiar with these requests and know exactly what type of statement to provide suggests this is becoming a recognized pathway for handling these stuck investments. I'm planning to call BlackRock this week using the number and approach that's been shared here. Based on everything I've read in this thread, I feel confident that with proper documentation and regulatory references, there's a legitimate way to claim these losses rather than waiting indefinitely for guidance that may never come. Thanks to everyone who's shared their real-world experiences - this community has provided the practical solutions that traditional tax resources completely missed!

I'm in almost the exact same situation with about $9,800 in ERUS that's been completely frozen since the sanctions hit. This thread has been incredibly helpful - I've spent months getting nowhere with my broker (Vanguard) who keeps telling me to "wait for further guidance" that never materializes. What gives me the most confidence from reading everyone's experiences is seeing multiple people successfully claim these losses using well-documented approaches. The combination of BlackRock documentation, IRS Publication 550 references, and proper Form 8949 filing seems to create a solid, defensible position. I'm particularly encouraged by Mae's recent success getting official documentation from BlackRock - the fact that they're familiar with these requests and have standardized language for tax purposes suggests this is becoming a recognized solution. I'm definitely going to call them this week using the number and approach that's been shared here. One thing I wanted to add that might be helpful for others - I found that IRS Notice 2020-53 also addresses situations where securities become effectively worthless due to government actions, even without formal broker reporting. It provides additional regulatory support for the position that sanctions creating indefinite trading suspensions can qualify for worthless security treatment. Thanks to everyone who's shared their real-world experiences here. This community provided the practical solutions that months of calling my broker and consulting tax professionals couldn't deliver. I finally feel like there's a clear path forward instead of just waiting indefinitely!