Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<<I have some shares of stock that are Chapter 11 and trading has been "halted". My on-line broker tells me that I cannot unload these (for tax right-off purposes) to anyone for any price until trading resumes. Am I stuck waiting for trading to resume (though I suspect the shares are to be "canceled" by the company and will therefore never resume)? I'm waiting for Roy's book in the mail. Any advice is appreciated in the mean time. >>

Thanks for the book order. But you can read more about this in the Taxes FAQ area. Get a qualified relative (the FAQ will tell you who that is) to open up an account with your broker before the end of the year. Then create a valid sales agreement between the two of you...with a check payable to you for the amount of the shares. Then instruct your broker to transfer the shares out of your account and into the account of the qualified relative. Viola!!! You have a sale. Your loss is secured and deductible in 1999. And if the junk ever comes back to life, at least the money will stay in the family.

Hope this helps...
TMF Taxes
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.
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.