Yes, you can deduct the entire loss of $13,000 on Schedule D. You should indicate that the stock is worthless. There is an option available in the software program to indicate that the Security is Worthless.
So, on Scheduel D
. the sale price indicated would display as "Worthless
", whereas the cost basis would be $13,000.
But, remember, you are only entitled to deduct a maximum of $3,000 of capital losses in any given tax year, with the balance carried over for future use to be either offset against future potential capital gains or deduct another $3,000 of capital losses with the balance carried over for future deductions.
Here are both instructions to Schedule D and an actual copy of the Form Schedule D. I am sure that you will gain additional insight into this form by clicking on the 2 links below. http://www.irs.gov/pub/irs-pdf/f1040sd.pdf
(Actual Form) http://www.irs.gov/pub/irs-pdf/i1040sd.pdf