2006-12-13 09:19:52 · 4 answers · asked by flora l 1 in Business & Finance ➔ Taxes ➔ United States
Only if it is actually "worthless". Because a company is bankrupt does not mean the stock is worthless.
The best thing to do would be to sell it to your broker for $1.00. Most brokers will do this and wave the commission. This would generate a 1099 for an actual paper trail.
2006-12-13 09:43:34 · answer #1 · answered by Wayne Z 7 · 4⤊ 0⤋
Yes, it will be shown as a loss on a schedule D.
If you bought 100 shares for lets say $5 per share and the company went under the share now being worth 1 penny you can show the shares cost at $500 and sale at $1 the loss of $499 will be shown on the Schedule D.
2006-12-13 17:40:31 · answer #2 · answered by T D 2 · 1⤊ 0⤋
You should contact the Tax Board Of Accountacy as they may be able to assist you, there number is (916)263-3680.
Merry Christmas!
2006-12-13 17:24:21 · answer #3 · answered by tysexy25 2 · 0⤊ 0⤋
Wayne Z is completely correct again! I need to beat him to the punch :-)
But I would definetly do what Wayne suggested.
2006-12-14 16:09:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋