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Posted by Cathy on January 2, 2007, 4:27 am
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Does anyone have any guidance regarding writing off the
seemingly worthless Enron stock? I have a few clients that
had some basis in Enron stock when the company went bankrupt
years ago, but I've not seen any guidance that this stock
has been declared "worthless". Can anyone shed any light on
this? Or, alternatively, does anyone know if a market
exists for this stock? I am referring to common stock.
Thanks
Cathy H. in Kansas
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Posted by Herb Smith on January 3, 2007, 10:29 pm
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Cathy wrote:
> Does anyone have any guidance regarding writing off the
> seemingly worthless Enron stock? I have a few clients that
> had some basis in Enron stock when the company went bankrupt
> years ago, but I've not seen any guidance that this stock
> has been declared "worthless". Can anyone shed any light on
> this? Or, alternatively, does anyone know if a market
> exists for this stock? I am referring to common stock.
See the following URL, and question 9 in particular.
http://www.enron.com/corp/pressroom/chapter11faq.html
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Posted by Phoebe Roberts, EA on January 3, 2007, 10:30 pm
Please log in for more thread options Cathy wrote:
> I have a few clients that had some basis in Enron stock when the
> company went bankrupt years ago, but I've not seen any guidance that
> this stock has been declared "worthless".
http://www.enronerisa.com/pdf/StockHoldersQA20041119.pdf
Enron stock was canceled on November 17, 2004, when the
company went into bankruptcy. Common stockholders got
shares of the Common Equity Trust, which will terminate no
later than 3 years (6 years if extended by the bankruptcy
court) from the date the bankruptcy plan was confirmed.
So I vote worthless at the point the Common Equity Trust
terminates (or worth something if you can turn in your stock
certificate for cash at the termination). It looks like a
number of columnists considered it worthless in 2004, but I
think it wasn't actually worthless then.
Phoebe :)
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2006) - All rights reserved. >>
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Posted by A.G. Kalman on January 3, 2007, 10:30 pm
Please log in for more thread options Cathy wrote:
> Does anyone have any guidance regarding writing off the
> seemingly worthless Enron stock? I have a few clients that
> had some basis in Enron stock when the company went bankrupt
> years ago, but I've not seen any guidance that this stock
> has been declared "worthless". Can anyone shed any light on
> this? Or, alternatively, does anyone know if a market
> exists for this stock? I am referring to common stock.
Enron stock was officially canceled in November of 2004. At
that time, Enron stated that they did not expect any former
holder of the stock to ever receive a distribution.
With the cancellation of the stock and the statement from
the company, the stock would have been considered worthless
by year-end 2004 and you should have taken your loss in
2004. (You can still amend 2004 to get a refund.)
As there were never any distributions to former holders, the
statement made in 2004 is evidence that the stock was
worthless in 2004 and that should satisfy the IRS.
It is possible, that you do not want to show the loss in
2004, but would prefer to show the loss in a later tax year.
In order to do that, you would need to produce evidence
that a market still existed in a later year.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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Posted by D.F. Manno on January 3, 2007, 10:30 pm
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> Does anyone have any guidance regarding writing off the
> seemingly worthless Enron stock? I have a few clients that
> had some basis in Enron stock when the company went bankrupt
> years ago, but I've not seen any guidance that this stock
> has been declared "worthless". Can anyone shed any light on
> this? Or, alternatively, does anyone know if a market
> exists for this stock? I am referring to common stock.
This document may be of interest:
<http://www.enronerisa.com/pdf/StockHoldersQA20041119.pdf>
--
D.F. Manno | dfmanno@mail.com
Now this is not the end. It is not even the beginning of the
end. But it is, perhaps, the end of the beginning. Winston
Churchill
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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