Replies to post #345402 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[drugmanrx]

To qualify for the deduction, your securities must be completely worthless – worth $0. A drop in the market value of your stock or securities, even if it’s big, doesn’t qualify for the deduction because your stock still has value.

Key words worthless, as long as the symbol is active and has a value of anything even .0000000001, it still has value.

Again, if there’s any chance the securities could have value, they’re not worthless.

Under new rule

To “abandon” a security, you have to give up all rights in the security and you can’t take anything in exchange for it, like money or other stock. So, the new rules may make it easier for you to claim the deduction even when the stock isn’t completely worthless.

Since the stock is in the global lock down it can not be sold even at near zero by certain brokers. It remains in your portfolio in a limbo status which hinders you from abandoning it.

Believe me been there done that with this stock and one other (VYON) for over 3 years now.