Radient Pharmaceuticals Corporation fka RXPC

[Gold Seeker]

How to get rid of worthless stock for a tax loss.

"You generally need to sell shares to be able to write off the loss. But if the company goes completely out of business and there isn't anything left for shareholders, then you can deduct the loss as a worthless security without selling it.

But, as you've discovered, sometimes a company is in limbo -- with the shares still technically trading but nobody buying them. In that case, your broker may help take the shares off your hands so you can write off the loss.

Many brokers have special rules for buying nearly worthless stock from customers. E-Trade, for example, charges a $5 commission to buy shares in a worthless-securities liquidation, which provides you with a trade confirmation for your tax records.

Charles Schwab offers a courtesy sale for people who can't sell their shares. Schwab adjusts the commission to be the same amount as the sale price of the shares, so the net ends up being $0.

TD Ameritrade can purchase lots of shares for $1. Clients are charged the standard online commission of $9.99, minus the $1 received for the sale of the shares. If the client does not have enough cash in the account to cover the cost of the commission, TD Ameritrade will work with him or her to settle the trade. Clients cannot complete this transaction online and must call TD Ameritrade's toll-free number.

Read more at http://www.kiplinger.com/article/investing/T052-C001-S001-how-to-sell-worthless-stock.html#Meh3yuCfWAIarHxj.99