Handling of GM stock

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Subject Author Date Handling of GM stock Michael Stemper 07-14-2009   Re: Handling of GM stock Steve Pope 07-14-2009  Re: Handling of GM stock D. Stussy 07-14-2009  Re: Handling of GM stock Arthur Kamlet 07-14-2009  Re: Handling of GM stock D. Stussy 07-16-2009  Re: Handling of GM stock Arthur Kamlet 07-16-2009  Re: Handling of GM stock D. Stussy 07-16-2009  Re: Handling of GM stock HLunsford 07-27-2009  Re: Handling of GM stock Diogenes 07-14-2009  Re: Handling of GM stock Arthur Kamlet 07-14-2009  Re: Handling of GM stock DF2 07-14-2009  Re: Handling of GM stock Wallace 07-14-2009  Re: Handling of GM stock Seth 07-14-2009  Re: Handling of GM stock Alan 07-16-2009  Re: Handling of GM stock paulthomascpa 07-16-2009  Re: Handling of GM stock Bill Brown 07-14-2009
Posted by Michael Stemper on July 14, 2009, 9:39 am Please log in for more thread options Presumably, the exit of General Motors from Chapter 11 has made (or is about to make) my GM stock worthless. This looks like a capital loss to my untrained eyes. How do I declare this on my US 2009 returns? Is it just treated as a long-term transaction on the front of Schedule D? Do I just put down my total basis as the purchase price and "$0.00" as the sale price? If not, is there some special form to use, or what? Marginally related to the above question: I was taking advantage of the Dividend Re-Investment Program (DRIP). This means that I have a number of purchases. Can I aggregate them, or does each one need to be itemized individually? -- Michael F. Stemper #include <Standard_Disclaimer> A bad day sailing is better than a good day at the office. -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Steve Pope on July 14, 2009, 10:09 am Please log in for more thread options >Presumably, the exit of General Motors from Chapter 11 has made (or is >about to make) my GM stock worthless. This looks like a capital loss >to my untrained eyes. If you can get your broker to buy it back from you, even for $0, that is better than just declaring it worthless. Steve -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by D. Stussy on July 14, 2009, 4:39 pm Please log in for more thread options > > >Presumably, the exit of General Motors from Chapter 11 has made (or is > >about to make) my GM stock worthless. This looks like a capital loss > >to my untrained eyes. > > If you can get your broker to buy it back from you, even for $0, > that is better than just declaring it worthless. Not necessary. This is due to bankruptcy. Add the word "bankrupt" in the description field. The "sales" date should match the Bankruptcy Court's decision date. -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Arthur Kamlet on July 14, 2009, 4:43 pm Please log in for more thread options >> >> >Presumably, the exit of General Motors from Chapter 11 has made (or is >> >about to make) my GM stock worthless. This looks like a capital loss >> >to my untrained eyes. >> >> If you can get your broker to buy it back from you, even for $0, >> that is better than just declaring it worthless. > >Not necessary. This is due to bankruptcy. > >Add the word "bankrupt" in the description field. The "sales" date should >match the Bankruptcy Court's decision date. I don't understand why this helps? Many companies declare bankruptcy, and the original stock emerges with value. -- ArtKamlet at a o l dot c o m Columbus OH K2PZH -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by D. Stussy on July 16, 2009, 6:55 pm Please log in for more thread options > >> > >> >Presumably, the exit of General Motors from Chapter 11 has made (or is > >> >about to make) my GM stock worthless. This looks like a capital loss > >> >to my untrained eyes. > >> > >> If you can get your broker to buy it back from you, even for $0, > >> that is better than just declaring it worthless. > > > >Not necessary. This is due to bankruptcy. > > > >Add the word "bankrupt" in the description field. The "sales" date should > >match the Bankruptcy Court's decision date. > > > I don't understand why this helps? > > Many companies declare bankruptcy, and the original stock emerges > with value. In which case he has no writeoff at all, so what's the problem? -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Question re: bad handling of 401k May 8, 2007, 12:52 am Inherited Annuity Taxability and Handling April 13, 2007, 11:48 pm Handling Personal Income Taxes Through Bankruptcy April 27, 2009, 3:51 pm Tax handling for Enron class action law suit recovery?? 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