club_cafe: ?? About Worthless stocks
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club_cafe: ?? About Worthless stocks >>I have sent this question to Bivio staff, but does anybody else know? >>I have 2 stock which I think are worthless. >>550 Shares of EXDSQ (Exodus Comm) 4 Shares of MCWEE (MCI WorldCom) >>How do I know they are worthless? My bank statement no longer list them at all. They are both worthless. Both companies went through bankruptcy reorganizations in which the outstanding common stock shares were canceled. You can find this information by searching the SEC EDGAR database and/or perhaps on the corporate websites. >>How do I know what year they went worthless? I think EXDSQ went worthless in 2002 and MCWEE went worthless in 2004. Yes, you have the years correct. The key date is the date on which the common stock was canceled. >>If EXDSQ when worthless in 2002, I do I account for it this year? Do I have to go back to 2002 and file an amended 1065 form? Do I have to re-do all the K-1 for each partner? Yes, you must go back to 2002, file an amended 1065, amend each of the K-1s and send copies of the amended K-1s to each partner. >>If I do need to file an amended return, can Bivio software do this for me? Do I just put that I sold the stock for $0 on 12/31/2002 and the software will do the rest? I just need to print out the docks? You'll have to wait for a response from bivio's support staff, but I don't see any reason why the software can't prepare the amended return provided you can still get access to it. (I don't know if the historical return availability within bivio includes the ability to rerun past year returns or only to view the saved returns.) If you can rerun the return, the only thing the software may not do (I suspect) is check the "amended" box on Form 1065 and each K-1. As you guessed, you enter a $0 sale on 12/31. >>How do the Partners of my club handle the new K-1s, do they need to file a amended individual return if they want the loss on their return? Or, can they use it against this year return? They must file an amended return for 2002. Depending on their personal situation, this can lead to having to file amended returns for 2003 as well if there is a capital loss carryforward. They cannot use it directly against their 2004 income without flowing through 2002 and 2003 first. >>I would like to just put the 2 stock as worthless this year, can I do this? No. Exodus must be entered in 2002. MCIWorldcom must be entered in 2004. >>Thanks so much! You're welcome. Ira Smilovitz IraS1@aol.com writes: > You'll have to wait for a response from bivio's support staff, but I > don't see any reason why the software can't prepare the amended > return provided you can still get access to it. (I don't know if the > historical return availability within bivio includes the ability to > rerun past year returns or only to view the saved returns.) All bivio tax software is available whenever you have a subscription. You can go back to 1999, which was the year we launched. We don't charge separately for tax software. Cheers, Rob Nagler bivio Inc. |
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