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Microcap & Penny Stocks : ProNetLink...PNLK...Click here to enter -- Ignore unavailable to you. Want to Upgrade?

To: Ted M who wrote (40595)	1/29/2002 11:39:29 PM
From: Stan	Read Replies (2) \| Respond to of 40688

FYI: If you still hold PNLK shares, you need to take the loss on PNLK on your tax return now for the year 2001. You cannot take it in any later year because the loss could be disallowed. The reason for this is that the loss can only be taken in the year when it becomes worthless. Worthlessness is determined by: bankruptcy, ceasing of business activities and insolvency. Usually all three of these conditions are needed to prove worthlessness. Even though PNLK could trade on "shell value" (although it is no longer doing so), the tax courts say that the safest practice for claiming a loss on any worthless stock is to claim the loss in the earliest year that the stock may be considered worthless. If it turns out to be the wrong year to have claimed it, then the claim can be renewed in the correct year and an amended return filed for the wrong year. So, if you are thinking of using PNLK in 2002 or later against gains then, don't do it. You could lose all of that advantage. Most people will have substantial carryforward capital losses into the coming year(s) anyway from PNLK. Stan