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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: mike mccann who wrote (7336)	11/4/1997 6:30:00 PM
From: Carolyn1	Read Replies (3) \| Respond to of 14577

To All, Some income tax information for those who stick it out till the END!! One indication that a security has become worthless is if the company has filed bankruptcy and has essentially gone out of business. Another is that it won't have a bid or a ask price. Something to look for: the circumstances of the company.ÿ For example is the company in receivership?ÿ Has the operator/principal owner disappeared or left the country?ÿ Is there a judgement against the principal owner that can't be collected or a decrease in the value of the main asset of the company? You should be able to establish that the worthless security had value in the year before the year in which you are planning to take the deduction, and that some event occurred that caused reduction of the value of the security to zero. You can only take a deduction for a worthless security in the actual year it became worthless.ÿ If you miss the year the security became worthless,ÿ you can't take the deduction on a later return...you must go back and amend your return for the earlier year. Carolyn :) ÿ