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Re: the count1 post# 29953

Friday, 06/29/2012 11:04:39 AM

Friday, June 29, 2012 11:04:39 AM

Post# of 41960
Count,

there are two ways to do it. The better way is to wait for it to be declared dead. If you own a stock that is not traded, at some point they MAY either be declared bankrupt or something else happens to officially end the company. That is when you can declare the loss. However, in many cases that never happens. they just "go away" and you have nothing. So, here's the other way.

Sell the asset. I have had some private placements that went belly up. Even though I put a lot of money into them, there was no market, no trading, and no prospects of any value. the comaapnies just ceased to exist, and nothing was ever filed. so I "sold" my entire position to my friend for $1. Signed the certs on the back where you can assisgn them, and gave them to him. Then I was able to take the loss on my schedule D for that year (and for the next 125 years or so ... but that's a different point. LOL) You have to "realize" the loss in order to take it. So you have to legally sell it. You can sell it privately, even if it is a non-trading stock, especially if you have owned it for over six months. Yes you are supposed to register that stock if itis restricted and do all those things, but if there is no prospect of it coming back then just sell it, get a paper trail in case the IRS ever asks, keep a receipt of the $1 transaction, just like any stock trade you would do through a brokerage, and then go buy a cup of coffee with the proceeds. wink

Hope that helps.