FedUpToHere, Sorry, but I spoke with my broker. The claims being made that brokers will report to the IRS a complete tax loss are not true. Spoke at length with the corporate actions department. FFGO stock is not trading. The shares remain in our brokerage accounts.
There may be no value assigned to this shares, since there is no quoting going on. But those share remain in the account. The only way the broker will notify the IRS of a tax loss or gain is if the stock is cleared to trade again, or if I, or any other FFGO shareholder requests that the stock be removed and written down.
I am sorry that the information provided by the broker does not support the wild claims of investors being hit with tax losses regardless and that since they will be hit with tax losses by the IRS in 2011, they must have their broker write down their shares to reflect this loss that WILL NOT BE AUTOMATICALLY REPORTED to the IRS!
I REPEAT! CLAIMS OF BROKERS AUTOMATICALLY REPORTING FFGO AS A TAX LOSS TO THE IRS ARE NOT CORRECT AND SHOULD BE TREATED WITH EXTREME CAUTION.
PLEASE CONTACT YOUR BROKER TO CONFIRM THAT THERE IS NO FORCED WRITE-DOWNS FOR FFGO STOCK!
NEITHER THE IRS NOR YOUR BROKER WILL FORCE YOU TO WRITE DOWN YOUR SHARES OF FFGO!
THERE IS NO CHANGE TO THE CAPITAL STRUCTURE OF FFGO. REVOKING DOES NOT CONSTITUTE A CAPITAL STRUCTURE CHANGE.
IN FACT, THE SHARES STILL REMAIN IN YOUR ACCOUNT, BUT ARE NOT TRADABLE! ACCORDING TO THE CORPORATE ACTIONS DEPARTMENT AT MY BROKER, DIVIDEND CAN BE PAID ON STOCK THAT IS REVOKED.
IF STATE OF INCORPORATION LAWS ALLOW A COMPANY TO PAY A DIVIDEND, AND FINRA APPROVES OF THE DIVIDEND, THE DTCC WILL NOTIFY THE BROKERS OF THE SETTLEMENT DATE OF THE DIVIDEND.
REVOKED OR NOT REVOKED, OUR SHARES ARE OUR PROOF OF OWNERSHIP AND WOULD QUALIFY FOR A DIVIDEND IF/WHEN IT IS SET AND APPROVED.
TIC TOC
Please research all stocks before investing. My posts are my opinions and are not buy or sell recommendations. Always force abusive short sellers to cover above what you paid. Build wealth for fellow iHub'ers!
