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Posted by Arthur Kamlet on April 25, 2008, 9:59 pm
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>>
>>| The sale to an
>>| unrelated party lets you close out the transaction for a capital loss,
>>| whether or not the securities are worthless (however anybody defines
>>| that).
>>
>>The reading I've done suggests that the loss on such a sale is not
>>allowed if the security is already worthless. I'm not clear on
>>whether that means worthless at the time of the sale (in which case
>>it is even more restrictive than simply entering "worthless") or
>>worthless in a previous year (same timing as entering "worthless").
>>Am I missing something?
>
>It would be "worthless in a prior year". If you have a security that
>became worthless in 2004, and you forgot to take the capital loss
>then, you can't take it now by selling. If it wasn't clear at the end
>of last year that it was worthless, you can take the deduction by
>selling it now.
You have seven years to amend for discovering a worthless security.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
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