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Msg  158061 of 158068  at  1/19/2024 3:15:00 PM  by

wavb

The following message was updated on 1/19/2024 3:18:12 PM.

 In response to msg 158054 by  bankbuyer
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Re: When? It's already over- take your loss befor year end

<<...call your broker and ask for a "courtesy bid">>

That's a great suggestion.

The rule is that you can take the loss when the stock is "substantially worthless." IMO, you don't even need such a bid but that would make it pretty bulletproof in any audit.

I took one such loss just on the basis that I could easily demonstrate the liquidated company was worth zero. In the very extremely unlikely event of some future recovery, you just need to declare the full recovery as income in the year you receive it.

The "substantially worthless" measure cuts both ways - shorts really need to declare the gain sooner rather than later, despite the complete BS claim that they never have to take it. The IRS made that one clear many years ago.

The amount of total bullsh*t that perpetuates around this issue is yet another knowledge error that little guys make at the hands of their supposed gurus knocking shorts.



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