First:
Only one of the great benefits of RMIL is the autopsy of the experience. One must constantly evolve. Asking the IRS hot line for tax advice is roughly the equivalent of asking Riley G/Angel D for investment advice.
Wasn't it Pugs who said, "Those that do not study history are condemned to repeat it."
Second:
The advice you were given is somewhat imprecise. The IRS Code (sic) requires that an asset which is otherwise deductible, is deductible in the Year it becomes worthless. Under these circumstances, a "sale or exchange", otherwise a requirement, is not necessary for the loss. The problem then becomes one of establishing the incidence of "worthlessness". I.E. the question becomes "when?". 'Finding a book' is just evidence of the worthlessness at the time of the book, it may not evidence the date it became worthless.
If the amount is not substantial, it is highly unlikely that the IRS will dispute whatever position taken. HOWEVER, should they wish, and if they wanted to be nasty; OR, if the agent that is assigned to the case turns out to be one of the NAYS; or, used to be an Evil Marker Maker, before (s)he worked for the IRS, (s)he might take the position that the stock was worthless about 1996, and since the statute has already run on that year, the loss-deduction might, other things equal, would be lost. But you must do your own DD. :)
|
