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I have no gains. I am assuming that if I do have some gains in some of the next 33 years that I could use this to counteract that. Or does the sentence, "Worthless stock can only be written off in the year it becomes worthless." mean that it can't be written off after that year? I am assuming that it means that it cannot be written off until it is declared worthless by the bankruptcy courts.

If the court declares the stock worthless, you show the loss on that year's Schedule D. It then becomes a capital loss carryover, as previously discussed, which is available to be applied against gains on future Schedules D. Each year the carryover is applied first to Schedule D, then if the Schedule D bottom line is a loss, $3,000 is used and the balance carried forward to the next year, where the process begins again. See Schedule D and its instructions. There's also a very good article in the FAQ on Netting Capital Gains and Losses that covers carryovers.

Phil
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