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Author: NeverBob Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: "Worthless" Stocks Date: 3/10/1999 8:12 AM
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I read the section on Worthless stocks, but still don't know what to do. I bought PCNI in 1997, and in 1998 it disappeared all together. I just get
"N/A" on my statements. (Talk about an expensive mistake. In my tax bracket, my current investments are food, shelter, and clothing....)

Can I do anything tax-wise? If so, what and how?
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12068 of 121219
Subject: Re: "Worthless" Stocks Date: 3/12/1999 10:45 PM
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[[ I read the section on Worthless stocks, but still don't know what to do. I bought
PCNI in 1997, and in 1998 it disappeared all together. I just get
"N/A" on my statements. (Talk about an expensive mistake. In my tax bracket,
my current investments are food, shelter, and clothing....)

Can I do anything tax-wise? If so, what and how?]]

If you read the post on the worthless stock deduction, you would already know that you will have to track down some information on the stock. Just because it's not traded doesn't mean that it's worthless for tax purposes. So first you have to find out more about the company.

Then, as noted in the worthless stock post, you can avoid all of the hassle by selling the shares to a qualified relative. That way, you'll get your loss in the year of sale, and the stock will stay "in the family" in case it ever comes back and amouts to anything.

If you are unsure about this, you might want to go back to the post and re-read it. In addition, we speak about selling the shares to a qualified relative in a bit more detail in TMF Investment Tax Guide.

TMF Taxes
Roy

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Author: NeverBob Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12234 of 121219
Subject: Re: "Worthless" Stocks Date: 3/15/1999 9:13 AM
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I re-read the section, and found that I could sell the stock to an in-law, should it be worth anything. But my statements from the broker say that the stock (PCNI) is N/A, so how can I sell it?

If I do sell it, do I deduct what I paid for it originally? And do I have to sell it before April 15, 1999? Or did it have to be sold before December 1998?

And how can I sell a stock to a relative when the broker is holding it?

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12311 of 121219
Subject: Re: "Worthless" Stocks Date: 3/16/1999 2:09 AM
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[[I re-read the section, and found that I could sell the stock to an in-law, should it
be worth anything. But my statements from the broker say that the stock (PCNI)
is N/A, so how can I sell it? ]]

You get the stock certificate from your broker, have a sales agreement with the appropriate person (for, say $.02/share), then sign over the shares to the buyer. Then contact the transfer agent to issue the shares to the new owner.

Of, if the relative also has a stock account with your broker, you can simply transfer the shares, but make sure that you have a VAILD contract of sale to the transfer doesn't get confused as a gift.

[[ If I do sell it, do I deduct what I paid for it originally?]]

You would complete Sch D, using the appropriate amounts for the purchase price and sales price...yes.

[[ And do I have to sell it
before April 15, 1999? Or did it have to be sold before December 1998?]]

If you wanted the deduction in 1998, it would have had to have been sold in 1998. So you are too late for 1998, but plenty early for 1999.

TMF Taxes
Roy

And how can I sell a stock to a relative when the broker is holding it?

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Author: NeverBob Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12322 of 121219
Subject: Re: "Worthless" Stocks Date: 3/16/1999 8:45 AM
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Ahhh, it is finally clicking. Thank you much for the assistance.

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