Sears Holdings Corp. (fka SHLDQ)

[justthefactsmam]

might want to have your accountant research "substantially worthless". seems to me that definition has been reached, especially given the sec filings which explicitly state the stock WILL be deemed worthless upon the completion of those things for which chemist provided the quote.

no sure i would want to get into an argument with the irs over the issue of absolutely worthless vs substantially worthless.

a ruling against you some years down the road could lead to penalties and interest potentially. make sure your accountant is willing to argue on your behalf with the irs if your timing is challenged.

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Now, let’s look at a couple scenarios: Suppose you sold Short Stock ABC and the stock became worthless before you covered your short. In that case, you must recognize gain as if the short sale were closed when the property became substantially worthless.