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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: eric yu who wrote (2117)	4/5/1999 8:49:00 PM
From: WalleyB	Read Replies (1) \| Respond to of 5810

Here's a quote from the IRS question and answer section web site. Worthless securities. Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became worthless during the tax year are treated as though they were sold on the last day of the tax year. This affects whether your capital loss is long-term or short-term. See Holding Period, later. They mention that this rule applies only to stocks other than those held by a dealer. Two questions 1) Do they mean my on line broker? 2) How do I go about getting the deduction for a worthless security if I can not sell the stock since a market does not exist for it? What am I missing here. I have stock in a company that is no longer worth anything. It's an empty shell, each share is worth 0. The stocks are held at an On line broker, they can not be sold anymore because the company as far as I can tell is not being traded. How do I deduct that loss from any gains I made in the same year? Sorry to be so wordy but I wanted to make sure I was clear. If this question is already addressed up stream in the thread please point me in the general direction, Thanks, in advance Jim