Thought I had them steared in the right direction by saying
the loss will be proceeds less basis but then I used
terminology that could have been construed as saying take a
worthless stock loss. Thanks for the clarification. The
stock is not "worthless" as far a the worthless sale rules
as you note. I think the common will have a value of zero
after the plan of reorganization is effective, but until
that time as long as the stock still has any value it is not
worthless for tax loss purposes.

IraS1@aol.com wrote:
> You make a "misleading" statement below...
>
>
>
> "However, in WCOM's case I believe the stock is clearly worthless."
>
>
>
> If you meant that in your opinion, the company will not revive and will not regain value, that is a valid opinion. If you meant that the stock is worthless for the purposes of determining a capital gain or loss, it clearly is not. The only foolproof method for determining a capital loss on WCOM is to sell the stock, since it is still trading.
>
>
>
> WCOM will become worthless for tax purposes when the bankruptcy court either liquidates the company and determines there is no residual cash to distribute to common stock holders, or approves the recapitalization of the company in a form which declares the previous common stock void.
>
>
>
> Ira Smilovitz
>
>
>
> In a message dated 12/01/02 5:54:51 PM Eastern Standard Time, hayward101@bivio.com writes:
>
>
>
> Bankrupt companies often still trade.  They may be delisted
>
> from the major exchanges though. For examply Enron still
>
> trades as a OTC stock.
>
>
>
> Bankruptcies are all different in some cases the common
>
> stock may not be completely worthless.  However, in WCOM's
>
> case I believe the common stock is clearly worthless.  If I
>
> were you I would definately recognize your loss before year
>
> end.  Even though the common stock will be worthless
>
> someday, as you note, it still trades so your loss would be
>
> measured the same as a normal sale, proceeds (however small)
>
> less basis.
>
>
>
>
>
>
>
> ROSE K. ROONEY wrote:
>
> >At our last meeting several of our members wanted to sell
>
> >WCOM because of the loss we occurred, and the fact that WCOM
>
> >is going bankrupt or has already gone bankrupt. It was
>
> >brought to our attention that the stock is still trading.
>
> >We could not understand how a bankrupt company could still
>
> >trade on the market.  Another point we discussed--what kind
>
> >of a loss would we take if the company is not worth
>
> >anything.  Any information you can give us to start a
>
> >discussion at our next meeting would be appreciated.
>
> >Thanks.
>
> >
>
> >Rose Rooney