2006-07-10 12:41:08 · 6 answers · asked by kurt k 1 in Business & Finance ➔ Taxes ➔ United States
A company can go into bankruptcy but have its stock still trading although it probably goes down a lot - if that's the case, can't do anything at tax time.
If the stock has become worthless, such as if the company has liquidated, then you can write off your loss on Schedule D - first goes against any other capital gains that you had, then if there's any loss left over, can take up to $3000 against ordinary income that year. Any net loss over $3000 may be carried over to the next, and subsequent, years.
2006-07-10 16:49:00 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
You would have to file a schedule D. The IRS will allow you to take a certain amount as a loss any amount you go over will then be held over to take in the following year.
2006-07-10 15:16:52 · answer #2 · answered by dldouc 2 · 0⤊ 0⤋
I would assume if the B/R is official and the stock is off the board, you can show it as a loss on your return, but there are various stages of bankruptcy, insolvency, etc.
2006-07-10 12:48:21 · answer #3 · answered by The Advocate 4 · 0⤊ 0⤋
I had this experience. I was allowed to use the loss to offset other passive gains in income, such as dividends from investments.
2006-07-10 13:07:28 · answer #4 · answered by hunamongyou 1 · 0⤊ 0⤋
you can take the loss, but it could take several years depending on the amount
2006-07-10 16:44:54 · answer #5 · answered by lanes 3 · 0⤊ 0⤋
You can usually deduct it but you need to talk to an accountant!
2006-07-10 12:47:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋