Question

Worthless Stock Capital Losses

Forum|Forum|5 years ago
February 14, 2021
1 reply
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I have worthless stock in my brokerage account that has been there for many years (approx 8 years). When I called to have them removed, they told me that I would then not be able to deduct the losses incurred from those stocks. Have I missed the timeframe for being able to claim the capital losses on these stocks?

N

npierson777

Unfortunately the answer is yes, you missed the deadline. You can deduct stock as a worthless stock loss for the year in which the stock becomes worthless The IRS says a stock is worthless when a taxpayer can show that the security had value at the end of the year preceding the deduction year and that an identifiable event caused a loss in the deduction year.