How to report capital loss for tax purposes.?

Question

I bought 1000 shares @0.04 for X company Later on company changed its name and I only received 4 shares woth $8. My question is how do I report loss since comoany changed its name and did a revers stock split.

Answer 1

Stock splits don't matter - your gain or loss is still your sale price (net of commission) less your purchase price (including commission). So in this case your purchase price was $40, your sale price $8, so your loss is $32. You don't mention commissions - if they were paid, then those should be figured in too. On schedule D put down the new company name, since that's what you sold.

Answer 2

in the adventure that your entire earnings previously deducting your exemptions is lower than 0, then the capital loss used up isn't the completed $3000. as an get mutually, for a depending baby who has no different earnings, the completed loss is preserved. the impressive attitude is: a million. 12 months of loss. Do the agenda D to make sure the completed loss. The 1040 line 13 will educate the as a lot as $3000 loss. 2. the subsequent 12 months. previously filling out agenda D's carryover strains, you detour to the worksheet contained in the agenda D classes. reckoning on your excellent earnings the 12 months previously, you could or would no longer have absorbed the completed $3000. The worksheet will educate how a lot carryover you've. (The worksheet is on web page 11 of this 12 months's agenda D classes. in case you bypass seem at it, you'll see it starts with line 40-one [after the deduction], no longer line 40 3 [after exemptions] of the 1040.) if you're contained in the 0, 10, 15% tax bracket, sure, you'll "waste" some or each and every of the loss. No, you won't be able to %. and choose what 12 months to carry the loss to. As a real looking remember, once you've a capital loss carryforward, you want to deliver in a 1040 each and every 12 months to carry the loss over even once you have not the different filing requirement. in case you initiate skipping years, you'd be on the mercy of the processing midsection clerks. you would might want to provide a spreadsheet showing how a lot--if any-- of the loss became used each and every 12 months and want they agree such as your math. for persons of sweet sixteen children who've no earnings and the placement is stuck previously 10 years are up, they are in all probability to decline situation. For adults, even 4 years later, it will be a mess.

Answer 3

You can contact the companies and ask them about the changes from the stocks and ask for verification. Go to the www.irs.gov website and download the Schedule D form. If you are in a brokerage, contact them and set up a Gainskeeper account. They can automatically generate a Schedule D, but you will have to ask the broker to do the info.

Answer 4

You'll have to sell the stock (changes in form, name, quantity irrelevant) to claim a loss.

You report it on the schedule D at the end of the year when you file your taxes.