Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Angel investment Loss
Posted by: Jwdilley, August 23, 2017 06:16PM
I purchased 1,066,098 shares of ABOUTUS.INC FOR $109,436, IN 2007. The company was sold to "jyte", and then merged with ATTENSA. The merger agreement converted shares at 1:.2683 ratio. I now have
286,069 shares.

I would like to sell the stock so I could claim a capital Loss. Obviously no buyers.

How do I claim a tax loss for something that is worthless, yet is still open stock??


Re: Angel investment Loss
Posted by: Art, August 23, 2017 10:29PM
Try asking your full service broker - or get one -- to write you a letter declaring there is no market at all for this stock, and therefore it is considered worthless. O wrote full service broker because of the believeabilness.

If it is not totally worthless, then sell the whole batch for, say. $1 for the lot, or whatever you can get for it.

And see whether you have become involved in a Ponzi scheme.

Re: Angel investment Loss
Posted by: Jwdilley, August 24, 2017 02:11PM
Would you buy?

Re: Angel investment Loss
Posted by: triad, August 25, 2017 02:55AM
From IRS publication 550:

Worthless securities also include securities
that you abandon after March 12, 2008. To
abandon a security, you must permanently surrender
and relinquish all rights in the security
and receive no consideration in exchange for it.
All the facts and circumstances determine
whether the transaction is properly characterized
as an abandonment or other type of transaction,
such as an actual sale or exchange,
contribution to capital, dividend, or gift.

Re: Angel investment Loss
Posted by: Snargle, August 25, 2017 06:23PM
What happened on March 12, 2008?

Re: Angel investment Loss
Posted by: ruth, August 26, 2017 01:44AM
Reg. 1.165-5(i) was finalized.



Sorry, only registered users may post in this forum.