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Beth,

At $3,000 a year the $20,000 is written off in 7 years.

I had Enron stock and did not get out of a couple tech stocks soon enough. It is depressing. The only advantage is I decreased my withholding because I will not be paying taxes on capital gains for awhile.

My sister worked for Lucent. It collasped as she was buying a house and had not exercised her stock options.

As others have explained the loss is declared in the year the loss is realized or the stock become worthless. After the first year the loss is carried forward.

Sometime the stock market has to recover.

Debra



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