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Subject:  Re: Company went bankrupt.What do I do w/the sto Date:  2/8/2001  12:56 PM
Author:  irasmilo Number:  45969 of 123001

Your stock loss is independent of your standard deduction and ultimately will be reported on Schedule D. Unfortunately, you can't report it until you sell the stock or it becomes worthless. Worthless in a tax sense means that there is absolutely no chance that the shares will ever have any value, ie., the company has closed its doors and liquidated all its assets and the creditors are still owed money.

This is not the same as the company declaring bankruptcy. Many companies' stocks still trade while they are bankrupt (even if only for pennies a share). And often, the companies reorganize and emerge from bankruptcy. Sometimes th