Electronic Cigarettes International Group Ltd fka ECIGQ

[ChuckBits]

I think someone recently posted that with a chapter 7, you can claim a "total loss" on your tax return so I did some research. It was implied you wouldn't be limited to $3,000.

"Yes", you can claim a total loss, as in "every dollar you invested" is deemed a loss. However, you are still limited to $3,000 per year. And, you need to file a special form along with "proof" there is no way to recover. Stuff I read said this often can trigger an audit. I'm not an expert, but sounds to me like you'd be better off selling for a $1.98 & claim the loss the old fashioned way...