Replies to post #138274 on Kraig Biocraft Laboratories Inc (KBLB)

[Suvorov]

It's legal that's not a problem. The only snag that I've seen in these instances is that if you can't actually deliver the stock electronically or physically (the actual stock certificate)and the stock is still in your account the IRS may say if its still in your possession the trade has not occurred.

And, BTW, there is no use using the write off if you haven't made capital gasin in the same years. I'm not sure how long you can keep the losses on the books to reduce capital gains? Three years? Better ask a real accountant.

IMO.

[TRUISM]

Hope this helps:


IRS Addresses Timing Of A Worthless Stock Deduction-December 15, 2016

Worthless Stock Deductions In General

The owner of stock that becomes worthless generally may deduct its tax basis in the stock as a worthless stock loss for the year in which the stock becomes worthless. The loss typically is a capital loss if the stock is a capital asset in the taxpayer’s hands. However, more favorable ordinary loss treatment applies under some circumstances to corporations who hold stock of an affiliated corporation that has become worthless.

In some situations, claiming the deduction too late can present a risk. If a taxpayer holds stock that becomes worthless in an earlier year but does not claim the deduction until a later year, there may be a possibility that the deduction would become unavailable in the event of an IRS audit.

If the IRS later denies the deduction for the later year at a time when it is too late to amend the return for the earlier year, the opportunity to claim the deduction may be lost. Consequently, it is often prudent to claim the deduction for the year in which the stock first becomes worthless.

*** FOR THE RECORD ***

I don't see this as an eventuality with KBLB stock...





Blessings to All

TRUTH