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Claiming a Loss for Worthless Securities (Abandonment)

Securities abandoned after March 12, 2008 can be written off as worthless (US Treasury Reg §1.165-5)

Discussed in Pub 17 http://www.irs.gov/publications/p17/ch14.html
Worthless securities also include securities that you abandon after March 12, 2008. To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it. All the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift.