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Hi,

I have some SYQT stock and the company has filed for bankruptcy, so what happens to that stock now? Does this mean I have lost that money?

Thanks
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[[Hi,]]

Howdy...

[[ I have some SYQT stock and the company has filed for bankruptcy, so what happens to that
stock now? Does this mean I have lost that money?]]

Not necessarily...at least not from a tax standpoint. The term "worthless security" is a technical tax term. Just because a company files for bankruptcy, or even if their stock is de-listed doesn't mean that you can take a deduction for "worthless" stock.

You can read more about the worthless stock issue (including a loophole that may allow you to keep the stock in the family, but take a definite loss on the stoak) in the Taxes FAQ area in the post "worthless stock". We also discuss the worthless stock issue (and the loophole) in The Motley Fool Investment Tax Guide. You might want to check it out.

TMF Taxes
Roy

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