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OK, a few years ago I foolishly decided that since so many people were making money hand over fist in the stock market, I wanted a piece as well. On a tip from a co-worker I purchased approx $2K in a tech company that soon lost 80-90% when the bubble burst. Discouraged as I was I stopped following the market for a while planning that if I returned to investing and actually made a profit, I'd sell said security to offset any gains I might have. Flash forward to present day and my return to investing this year (new account/broker as well) and, at least some, success. Called old (online) broker to find that my account was closed and thet the previous stock was deemed "worthless" in 2002. I believe I can find paperwork for the initial purchase, but thats where my paper trail ends. Is it possible to use last years loss at this point to offset this years gain? Is there some paperwork I can request from my old broker for the worthless security?

Any help appreciated.

-jay
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You can refile your 2002 taxes, claiming the loss. It can offset up to $3000 of last year's income (assuming in 2002 you did not claim other losses). Since you only lost $2000 you can claim it all for the year in which the security became worthless, 2002.
If the stock was declared worthless in 2002, the exact date isn't important although your broker can probably give you a date to put.
Refiling last years taxes is not that difficult--you just amend the tax using I think it is 1040X, which asks for the item that differs, and pertinent figures from the 2002 1040. Not hard.
Best wishes, Chris
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