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Stocks of Bankrupt Companies and Capitol Loss




Hi,
I've got some stock in LEHMQ, WAMUQ, and VNBCQ. Is there a possible outcome where I won't be able to claim a capital loss on it?

I sold $3k of it last year, and plan to sell another $3k this year, but was waiting till December. Do I need to sell before something happens, like they just plain disappear, or can I still claim if they completely delist?
Thanks.




Comments for
Stocks of Bankrupt Companies and Capitol Loss

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Jun 25, 2010
Stocks Simplified Writes
by: Shaun

Well, if your stock becomes worthless then it can be written off as a capital loss. Note: Just because a company declares bankruptcy and is taken off the exchange does not mean it is worthless. If the company files Chapter 11 bankruptcy and is coming back you cannot count it as a stock loss because the company will return and so will your shares.

You have to be absolutely certain that your shares are worth $0 and there is no way to get it back from that investment before you can file a loss. You can always talk to an accountant to find out more about that.

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