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Tax Deduction Consulting: Worthless Stocks Brigham City UT

How does the IRS view stock in a failed company? Well, it is seemingly simple, but a bit technical when looked at closely. Generally speaking, the IRS takes the position that completely worthless stock should be treated as though it was sold on the last calendar day of the year in question.

Mr. Gregory W. Williams (RFC®), CFP, CHFC, CLU, LUTCF, MSFS
(801) 453-2271
6340 South 3000 East, Suite 500
Salt Lake City, UT
Company
Exit Strategy Specialists, LLC
Qualifications
Years of Experience: 26
Membership
IARFC, MDRT, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Business Coach, Charitable Planning, Education Plan, Asset Protection, BuySell, Compensation Plans

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H&R Block
(801) 223-9766
1549 N STATE ST STE 102
OREM, UT

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H&R Block
(801) 334-4002
5845 E AVE BLDG 412
HILL AFB, UT

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H&R Block
(801) 255-3231
7065 S STATE ST
MIDVALE, UT

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H&R Block
(801) 495-4172
9151 S QUARRY BLVD
SANDY, UT

Data Provided by:
Mr. A. Wayne Margetts (RFC®), LUTCF
(801) 532-1871
175 S Main St, Ste 1050
Salt Lake City, UT
Company
LPL
Qualifications
Education: BSc (Math)MBA
Years of Experience: 16
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

Data Provided by:
H&R Block
(435) 725-3335
855 E 200 N STE 112-3
ROOSEVELT, UT

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H&R Block
(801) 832-8932
2356 S FOOTHILL dr
SALT LAKE CITY, UT

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H&R Block
(801) 262-0758
4871 S STATE ST
MURRAY, UT

Data Provided by:
Liberty Tax Service
(866) 871-1040
366 S 500 E
Salt Lake City, UT

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Tax Deduction Consulting: Worthless Stocks

Turning Your Worthless Stock Into A Tax Deduction

Own stock in a company that went bankrupt this year? You are not alone. Fortunately, you may be able to take a income tax deduction on that worthless stock.

Good year or bad, there are always going to be a number of publicly traded companies that crash and burn in a given year. Remember, Enron was a disaster in the middle of one of the strongest economic environments in years. Of course, there has been more bad news than good since then, so failing companies have become a bit of the norm.

How does the IRS view stock in a failed company? Well, it is seemingly simple, but a bit technical when looked at closely. Generally speaking, the IRS takes the position that completely worthless stock should be treated as though it was sold on the last calendar day of the year in question. The question, of course, is what does "completely" mean? The answer is a totally worthless stock. This means one that is no longer traded anywhere. Many taxpayers get into trouble by claiming this deduction when a stock is delisted. A delisted stock may not be on NASDAQ or NYSE anymore, but it could still be trading on the pink sheets or warrant markets. If so, it is not completely worthless.

To claim the deduction, you'll need to get Schedule D for the 1040 tax form for the year in question. The entry is made in lines 1 or 8 depending on whether the stock was held short term or long term. Keep in mind, the date used to determine this is the...

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