what happens taxwise, when this happens to a stock (link)?

[abc]

http://www.newsday.com/busines...y-nybusiness-headlines


i have a little bit, say 100 shares up to the end.

can i write it all off as a total capital loss?

 

[abc]

bump

 

[jyates]

I would say that the stock will be of no value if the company isn't in business and if you can't sell it sure you
can write off the original cost you had in it as a loss for tax purposes.

 

[ingenuiti]

Reading the article, the company will not continue business and is liquidating its assets to pay off creditors. Share holders are the last to receive money left over from liquidation, assuming any is left. The company is now out of business and worth nothing.

Tax wise, I'm not sure you can write this as a loss. Because this was an investment and not a business you directly ran.

 

[psyman1]

Well. The proceedings have not been completed so you can still sell the stock actually. Acclaim currently trades under the ticker symbol AKLMQ and trades for about a penny or so.

After chapter 7 it can be a bit tricky depending on how you bought the stock. To make a long story short, yeah, you can write it off as a capital loss. To make things simple I would just sell the stock now though.

 

[ReiAyanami]

MORTAL KOMBAT!!!!
.
.
.
.
.
.
.
.
.
~FATALITY~

 

[jyates]

Originally posted by: ingenuiti
Reading the article, the company will not continue business and is liquidating its assets to pay off creditors. Share holders are the last to receive money left over from liquidation, assuming any is left. The company is now out of business and worth nothing.

Tax wise, I'm not sure you can write this as a loss. Because this was an investment and not a business you directly ran.

I'm not a tax expert by any stretch of the imagination but I do buy and sell stocks and I know
you have to pay taxes on gains in the stock market (you only claim the gains after the stock
has been sold) and you can file your losses in the stock market (after you sell the stock
for a loss). Your stock closed at .0176 a share today so I assume you can sell it (might
cost you more than it's worth to sell it) and then file the loss on your 2004 taxes.

The question is what did you buy the 100 shares for? The stock has traded under $1 a share
for over 21 months but has been as high as $30 back in 1993.

Long story short.....if you didn't pay much for it then it may not be worth the tax benefits to
pay the commissions to sell it.

 

[jadinolf]

Originally posted by: jyates
I would say that the stock will be of no value if the company isn't in business and if you can't sell it sure you
can write off the original cost you had in it as a loss for tax purposes.

3 grand per year.
I wish I didn't know that.

 

[EagleKeeper]

Originally posted by: jadinolf

Originally posted by: jyates
I would say that the stock will be of no value if the company isn't in business and if you can't sell it sure you
can write off the original cost you had in it as a loss for tax purposes.

3 grand per year.
I wish I didn't know that.

But the excess can be carried over to the next year.

 

[abc]

Originally posted by: psyman1
Well. The proceedings have not been completed so you can still sell the stock actually. Acclaim currently trades under the ticker symbol AKLMQ and trades for about a penny or so.

After chapter 7 it can be a bit tricky depending on how you bought the stock. To make a long story short, yeah, you can write it off as a capital loss. To make things simple I would just sell the stock now though.

ah, the proceedings have not been completed so I can still sell the stock actually... that was something that i was not sure about, i had some stupid thought that once they filed bankruptcy, or something like that, you already lost your chance to sell and make things simple during tax time...

that or, at any moment the stock drops to completely worthless, like we talking 0.00, then i can't sell it for anything, and it gets complicated? too... unless that's just simply a complete capital loss.

 

[abc]

Originally posted by: jyates

Originally posted by: ingenuiti
Reading the article, the company will not continue business and is liquidating its assets to pay off creditors. Share holders are the last to receive money left over from liquidation, assuming any is left. The company is now out of business and worth nothing.

Tax wise, I'm not sure you can write this as a loss. Because this was an investment and not a business you directly ran.

I'm not a tax expert by any stretch of the imagination but I do buy and sell stocks and I know
you have to pay taxes on gains in the stock market (you only claim the gains after the stock
has been sold) and you can file your losses in the stock market (after you sell the stock
for a loss). Your stock closed at .0176 a share today so I assume you can sell it (might
cost you more than it's worth to sell it) and then file the loss on your 2004 taxes.

The question is what did you buy the 100 shares for? The stock has traded under $1 a share
for over 21 months but has been as high as $30 back in 1993.

Long story short.....if you didn't pay much for it then it may not be worth the tax benefits to
pay the commissions to sell it.

Hi there, it won't cost me more to sell it I believe, as I bought it perhaps around 1999, it might have been around 5 bucks a share then when i bought it, and i checked and I have 400 shares, 200 bought in maybe 1999 and another 200 bought in around 2000.

so, lets say that was around 2,000 cost.. so if I sell it, it would cost me about 20bucks to unload.
it's a 2,000 loss I can write off this year?

What if I don't 'need' can't utilize the write off this year... can I carry all of the 2,000 to next year?

 

[dartworth]

Originally posted by: ReiAyanami
MORTAL KOMBAT!!!!
.
.
.
.
.
.
.
.
.
~FATALITY~

:laugh:

 

[abc]

bump

 

[jadinolf]

Originally posted by: EagleKeeper

Originally posted by: jadinolf

Originally posted by: jyates
I would say that the stock will be of no value if the company isn't in business and if you can't sell it sure you
can write off the original cost you had in it as a loss for tax purposes.

3 grand per year.
I wish I didn't know that.

But the excess can be carried over to the next year.

Right. My excess will go to 2067.