Can I claim a loss on a delisted stock?

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meadowrue
Posts: 684
Joined: Wed May 04, 2022 3:55 pm

Can I claim a loss on a delisted stock?

Post by meadowrue »

Years ago, DH bought a penny stock that went nowhere and is currently not actively trading. Delisted might not be the right word but I think there was some fraud with the company and it went belly up. On E-Trade, it says fair market value is N/A but it shows the price we paid several years ago. Can we claim this as a loss for tax purposes? We can’t technically sell the stock because it’s not actively trading. I am cleaning up our financial house and this is a dinosaur from the pre-Boglehead days. Thanks for the help!
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livesoft
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Joined: Thu Mar 01, 2007 7:00 pm

Re: Can I claim a loss on a delisted stock?

Post by livesoft »

Typically in the past, one got their broker to buy it for $1, but that doesn't seem to happen nowadays. The IRS has a helpful thing about "worthless securities" which you can read: https://www.irs.gov/pub/irs-pdf/p550.pdf page 36. Nevertheless, call your broker.
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Topic Author
meadowrue
Posts: 684
Joined: Wed May 04, 2022 3:55 pm

Re: Can I claim a loss on a delisted stock?

Post by meadowrue »

livesoft wrote: Mon Feb 12, 2024 6:14 am Typically in the past, one got their broker to buy it for $1, but that doesn't seem to happen nowadays. The IRS has a helpful thing about "worthless securities" which you can read: https://www.irs.gov/pub/irs-pdf/p550.pdf page 36. Nevertheless, call your broker.
Thanks, livesoft. My broker is e-Trade so I could try connect with someone there but will look through that IRS link first. Much appreciated!
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
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