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Microcap & Penny Stocks : MTEI - Mountain Energy - No BASHING Allowed -- Ignore unavailable to you. Want to Upgrade?

To: George C. Grasser who wrote (10841)	10/25/1998 9:04:00 PM
From: jhild	Read Replies (2) \| Respond to of 11684

First let me say that I am not an accountant, but I have been doing my own taxes for quite a few years (too many as far as I am concerned). So that said let me try to answer your concerns, hopefully without leading you too far astray. As always if in doubt, check with a professional. I think it is enough to show that it is worthless at the end of the year, by just printing out a chart off the net along with a price quote showing that it does not have enough value to cover the commission to sell it. Just put this copy in your tax records. Since the management has resigned getting a letter from the company would be problematical at best. Let the IRS prove that it had any value at that point I say. If the stock ever becomes worth something in the future, then you will need to declare that it has a 0 cost basis (since you are taking it as a complete loss), with a transaction date of the last day of 1998 for figuring whether it is a long term or short term gain. But then you would be more than happy at that point to pay taxes on the whole sales price, no? I don't believe the size of the loss matters with respect to itemizing. It is a schedule D event. I think it may mean the difference between your filing a 1040 short or long form though, but not itemizing per se. Check the filing instructions for 1040 and 1040-EZ. There is however a $3,000 limit on losses that you can offset against income. But that figure is net of any gains, so you can offset more than $3,000 of your loss if you take a profit in another stock. Any loss remaining in excess of taking the $3,000 maximum, carries over to following years until it is exhausted. So keep track of any carry over.