Income Taxes and Record Keeping ( tax ) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mod who wrote (1600)	12/12/1998 11:03:00 PM
From: Colin Cody	Read Replies (1) of 5810

You prove that it was sold at fair market value by: Accepting a BONA FIDE offer of $1.00. Accepting the $1.00 paid by check. Depositing the $1.00 check. Transfering your certificates to the buyer. Now, if clearly the stock is NOT worth $1.00 i.e. it is IBM selling for $166.00 a share OR it is an old Vancouver gold mine defunct for the past 20 years, that wont fly. You need to establish that the BONA FIDE offer was really not some SCAM. Examples: Showing that the stock has been delisted RECENTLY, or perhaps bankrupt and without significant assets currently, would likely do it. Saving old documentation from your broker and the Company might help. If your broker buys it for $1, this is almost a moot point, as the broker is an expert on valuations, by definition. So it is EASY, but not so easy that a taxpayer should try it with the intent to SCAM the gov't or to EVADE taxes. Key points: $1 must be the TRUE BONA FIDE FAIR MARKET VALUE i.e. it ain't exactly worthless yet! (or if worthless it became worthless in the same year as the $1 sale) And you must sell to a non-relative, independent third party. Colin

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next