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Posted by rlsusenet@NOSPAMPUHLEEZschnapp on March 24, 2008, 1:30 pm
Please log in for more thread options Phil Marti wrote:
>
>> I invested XYZ company's note. On 1/21/05 XYZ company filed chapter 11
>> bankruptcy, it converted to chapter 7 bankruptcy on 5/17/05. Since
>> then I have not receive any capital loss statement except a notice
>> from a State branch of United States Bankruptcy Court.
>
> Which said ....?
>
>> It has been more than 3 years since XYZ filed bankruptcy. My question
>> is
>> 1. How can I claim the capital loss with my tax return?
>
> You can't until your asset is worthless. That will been when the debtor has
> been "discharged" from bankruptcy and you've been told how much you're
> getting from the payout.
>
>> 2. Will my right to a tax refund from my loss as an investor in XYZ
>> company's note expire on April 15, 2008?
>
> No. You show the loss on your return for the year it becomes worthless, and
> the time for doing so in an amended return is extended to 7 years. See page
> 37 of IRS Publication 550.
Can he sell his interest to someone for a nominal price, and take the
loss in 2008?
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