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How do you realize a loss on stock that you cant sell?
I want to liquidate some stock that have gone so low as to no longer be listed on the stock exchange, so that I can deduct them from my taxes. Since I cant sell them what can I do?
14 Answers
- A nobodyLv 73 years agoFavorite Answer
You should contact your brokerage firm you purchased the stock from give them the name of the stock and ask for a quote.
If your with a major firm they will either buy the stock from you at "a $1.00 for the lot", they will send you a notice "no quoted market for the stock". Either one of these will get you an accepted IRS write-off.
Depending on the amount of the loss, if it's not a material item, just take the loss. Be prepared to demonstrate that there was no quoted market for the stock.
Source(s): from The Street - tiescoreLv 63 years ago
Call your broker, most will do some transaction where they effectively buy it off you for a buck (or less) so you can book the loss.
- StephenWeinsteinLv 73 years ago
If they have become worthless, then you just list it as a loss of whatever you paid for it. If they are worth something, even just $0.01, you have to stop owning them, even if it's by giving them away. A stock broker can help you with this.
- Anonymous3 years ago
No clue
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- Anonymous3 years ago
As long as you still own the stock, you can't realize the loss. The only way to realize the loss is if the corporation itself ceases to exist, in which case you own nothing anymore, or if you sell the stock. If nothing else, contact the corporation itself to see what it is willing to buy back those shares for.
- 3 years ago
Claim them as zero worth. If the IRS disagrees, pay your taxes "in kind" with the stock certificates.