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Lets say an investor purchases 10 shares of company XYZ at $50. Over the span of one year, the stock falls to $1. The company then conducts a 30 to 1 reverse split. The net result in this account is that the 10 shares will be removed; however, $10 is deposited in the account to compensate for the value of the shares.

Question: Is this investor able to claim a tax loss? The investor does not have any shares to sell so how would he claim one?

Thanks in advance.
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