Sunday, January 16, 2011 8:50:29 PM
Go to your broker's website, download the "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.
I have done this before and actually had a stock begin trading again. I had to report the gain when I sold the stock, and my cost basis was zero as I already wrote the entire amount off as a loss.
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