edenbrook wrote:

- quote -

Upon exiting bankruptcy and canceling its stock, your
ownership of Worldcom became worthless. You may write off
your investment in Worldcom as "worthless" as of 12/31/04
assuming that you do not receive anything of value
pertaining to your investment in Worldcom before year-end.

--
Alan
http://taxtopics.net

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Worldcom emerged from bankruptcy on April 20, 2004
and cancelled its common stock.

In the meantime there are several class action suits,
notably Citigroup, as well as an SEC fine on Worldcom.
Resultant awards (minimal) are to made to stockholders
buying Worldcom during a specified time window.

My broker has changed the Worldcom symbol on my statements
and simply assigned an ID number to the account containing
my cancelled stock. I expect that any future distribution
from fines/class action suits will be credited to this
account as funds are distributed.

Question: Is my capital loss my full purchase cost since the
stock has been cancelled, OR do I need to wait until all
payments are made from the suits to determine a "net"
capital loss.

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