Hangover Joe's Holding Corp. (fka HJOE)

[I-Glow]

The HJOE braintrust is now having a discussion about writing off worthless stock - the information is priceless.

Generally, to be able to write off worthless securities, you need to show that they're indeed worthless. It's not necessarily easy, as you need to prove that there's no way they will regain any value in the future.

in 2008, the Treasury adopted regulations saying you can establish the worthlessness of securities by abandoning them. The regulations do not explain the steps that would constitute abandonment, but it seems reasonably clear that gifting or donating securities is not the same as abandonment: you have to give up all rights to the shares, including the right to determine who would enjoy the benefit if they somehow recovered value.

When HJOE was revoked the the stock was deemed worthless.

I will provide some help and guidance.

From ETrade: WORTHLESS SECURITIES AUTHORIZATION FORM: https://content.etrade.com/etrade/customer/invest/Worthless_Securities.pdf

Use this form if you want to relinquish a worthless security you hold and to authorize E*TRADE Securities or it’s affiliates, to sell the security for a $0.01 for the lot.

Nothing says worthless stock like being suspended by the SEC and then being revoked.

IG