Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: donsena Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Worthless Stock Date: 5/11/1999 2:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I own stock in a company that went bankrupt. What does fool have to do to claim the loss to the tax man.
Print the post Back To Top
Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15427 of 121061
Subject: Re: Worthless Stock Date: 5/11/1999 4:52 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
donsena writes:

I own stock in a company that went bankrupt. What does fool have to do to claim the loss to the tax man.

I reply:

Take a look at the Taxes FAQ for details, but the practical answer is to sell it to a relative for a dollar. Once in a great while, the stock of a bankrupt company rebounds; when that happens, it's nice to keep the profit in the family. Also, because of this possibility (among others), it can be difficult to convince the IRS that the stock really was "worthless," and that it became so in the tax year for which you're claiming the loss. Good luck! --Bob

Print the post Back To Top
Author: TaxService Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15429 of 121061
Subject: Re: Worthless Stock Date: 5/11/1999 5:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I own stock in a company that went bankrupt. What does fool have to do to claim the loss to the tax man.

***The fact that the company went bankrupt does not mean that your shares have become worthless. It could take years for that to happen and the stock could even rebound to become a real winner. To take the loss you could sell the stock to a broker who might be willing to take it off your hands.

There was a thread on this very subject between May 3 & May 5, 1999. In his post #15295, dated 5/5, TMFTaxes suggests you sell to a relative (not blood related), for pennies, in order to take the loss. If the stock ever were to rebound, the gains would be kept in the family. Just remember that the loss will not be allowed if you sell to any member of your family (brother, sister, spouse, ancestor, or lineal descendant).

"Jack"

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement