Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have(had) stock in a company that has filed chapter 11. Do I declare a long term capital loss this year and if so on what cost basis. Also, under reorganization, do the shareholders of a bankrupt company have any claim to the new stock to be issued.

****In order to claim a loss, the stock must be totally (without any reservations) worthless. If you feel the stock has no chance of coming back, and want to unload, in order to use the losses, you can sell the stock to a willing buyer. Some broker's might pay you $1. to buy it. You would then be able to take the loss.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.