SPOOZ Inc (SPZI)

[funmaxus]

From what I understand, one can go to your broker and download the "Request for Removal of Worthless Securities Form", send it to your broker, and they will issue a loss on your monthly statement for the amount that you've invested.

There is nothing to worry about with the IRS, as it is a total loss if you can't sell. If your stock does get a bid again someday, and you sell the stock for a gain, which you would since your new cost basis is zero if you requested your broker for a "WSF" and had them execute it, then you have to report that gain as income

See below for IRS website for more info--->

IRS Reminds Taxpayers They Can Use Stock Losses to Reduce Taxes
http://www.irs.gov/newsroom/article/0,,id=103509,00.html

Next is just general info--->

Capital Gains from Trading and Investing
http://www.armencomp.com/tax-topics/capital-gains

The aforementioned is my opinion only and should not be considered professional advice, but rather a discussion only for information purposes.

I would strongly suggest that you contact an individual with a professional designation under law, such as CPA, CFP etc for matters regarding securities and taxation.

Best of luck.

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