club_cafe: How to report bankruptcy of a stock

iras1 on

You don't. You need to sell the stock to claim the loss. Declaring bankruptcy does not, in and of itself, make a stock worthless. Many bankrupt company stocks continue to trade. It takes a total liquidation of the company with no distribution to the common stock shareholders or a court determination that the stock is worthless or a decision by the company's board to cancel the outstanding common stock to make the stock worthless.

Perhaps, if you told us which company it was, you could get a definitive answer.

Ira Smilovitz

In a message dated 02/19/03 7:15:51 AM Eastern Standard Time, mathwickc@bivio.com writes:

One of the stocks our club owned went bankrupt. We had a
loss of over $800 on the stock. How do I enter this in
Bivio so I can run the tax forms showing this loss?

Albert St. Onge on

Our club also has one of these thorny issues to deal with.
The stock is (was) listed as NSPQE.OB (Inspire Insurance
Solutions, Inc) We know it is of no value but do not know
how to get it off our books. Any help would be appreciated.
Al

IraS1@aol.com wrote:
> You don't. You need to sell the stock to claim the loss. Declaring bankruptcy does not, in and of itself, make a stock worthless. Many bankrupt company stocks continue to trade. It takes a total liquidation of the company with no distribution to the common stock shareholders or a court determination that the stock is worthless or a decision by the company's board to cancel the outstanding common stock to make the stock worthless.
>
>
>
> Perhaps, if you told us which company it was, you could get a definitive answer.
>
>
>
> Ira Smilovitz
>
>
>
> In a message dated 02/19/03 7:15:51 AM Eastern Standard Time, mathwickc@bivio.com writes:
>
>
>
> One of the stocks our club owned went bankrupt.� We had a
>
> loss of over $800 on the stock.� How do I enter this in
>
> Bivio so I can run the tax forms showing this loss?

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