Stock Bankruptcy

Deborah Wheeler on

Our club owned Northfield Lab which is showing on our TD
Ameritrade statement with a very small market value, yet the
company filed for bankruptcy on 10/2/09. How should we
handle this--especially as far as taxes in 2009 are
concerned.

iras1 on

Bankruptcy does not make a stock worthless. You do not have anything to report for 2009 regarding this stock. If you sell it or if the bankruptcy court deems the stock worthless, you can take the capital loss in 2010.

Ira Smilovitz

Join me at InvestEd 2010

Investor Education at Its Best^TM
Baltimore, MD August 6 - 8, 2010
http://www.investor-education2010.org/

In a message dated 01/19/10 13:14:20 Eastern Standard Time, dwheeler724@bivio.com writes:

Our club owned Northfield Lab which is showing on our TD
Ameritrade statement with a very small market value, yet the
company filed for bankruptcy on 10/2/09. How should we
handle this--especially as far as taxes in 2009 are
concerned.

Mail