Thank you, sir, for the corroborative reply with cites.
And as I wrote, if somebody wants to get something on paper (which they don't need, butt some people use as a security blanket), the easiest thing to do is fax and email an order to the broker demanding a market sell of the security or a written explanation why the market order sell could not be filled.
In case #1, you will have taken the crapola off your books, in case #2 you will have your written documentation showing the unmarketability. In both cases, however, the tax year you must take the worthless security on your Schedule D is the year that SPNG underwent Chapter 7 liquidation bankruptcy and ceased to have any assets or operating business.
You can carryforward the capital loss on Schedule D if your net (overall) capital loss for that year was more than ($3,000) that is written off against your adjusted gross income on Form 1040. Butt the year of the initial tax writeoff of SPNG was the year that SPNG ceased to have any assets or management in the Chapter 7 liquidation. You then carryforward that loss to later years on Schedule D until the capital loss is eventually used up over time on subsequent tax years' filings.
And the individual needs to get a new tax advisor - the current one is clearly incompetent, as this is a pretty basic thing that a tax preparer SHOULD know.
Again, thanks for the post.
