Replies to post #302772 on Sulja Bros. Building Supplies, Ltd (SLJB)

[eliaman]

IRS told you that you could not write off as worthless what else do you want? Canadian laws don't apply in thr US, message board posters don't overrule the Irs answer to your question. The stock still trades.

[EarnestDD]

Some tax info posted on another board that may be of value to US SLJB shareholders. jmo

Go to your broker's website, download the "Worthless Securities Form", send it to your broker, and they will issue a loss on your monthly statement for the amount that you've invested.

There is nothing to worry about with the IRS, as it is a total loss if you can't sell. If your stock does get a bid again someday, and you sell the stock for a gain, which you would since your new cost basis is zero if you requested your broker for a "WSF" and had them execute it, then you have to report that gain as income.

I have done this before and actually had a stock begin trading again. I had to report the gain when I sold the stock, and my cost basis was zero as I already wrote the entire amount off as a loss.

[tld55]

Abandoned Shares
•It's also possible to deduct the value of shares abandoned after March 12, 2008. Abandoned shares are those in which you've surrendered all rights in and received no consideration for. This could occur as part of an irrevocable trust or other financial planning strategies. The IRS strictly examines all the circumstances surrounding the transaction to determine whether it is truly an abandonment rather than a sale, exchange or gift.


Read more: Are Worthless Stocks Tax Deductible? | eHow.com http://www.ehow.com/about_5419168_worthless-stocks-tax-deductible.html#ixzz18rUVjlGB



You might want to check on this.