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About 7 yrs ago I purchased a stock penny stock for a couple of hundred dollars and the company is no longer around. I never took the tax deduction because I never had anything to off set the loss. The stock is worthless and the company went bankrupt about 3 yrs ago. I just started to get serious about investing again and want to know if I could take the penny stock as a loss THIS year or is there a time limit?

You have to take the loss in the year the stock became worthless. You don't get to pick and choose the year.

There's more info in the FAQ, but in your case, it sounds like the stock was worthless when it went BK and dissolved a couple of years ago.

The good news is that you can still amend that return and claim the loss correctly.

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