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#3
12-24-2008, 09:53 PM
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 Re: Wiped-out investment -- necessary to sell? Seth <sethb[at]panix.com> wrote: - quote - > Steve Pope <spope33[at]speedymail.org> wrote:
Good point, except that the stock is in the holding company,> > I have some worthless Washington Mutual bonds. They last > > traded at one penny -- that is to say, one ten-thousandth > > of face value. > > Although certain WaMu bondholders will see some recovery, my > > bonds happen to be in a class that will see nothing. > > The question is -- do I actually need to sell them to take > > the capital loss, or can I simply do nothing and claim it > > anyway for 2008, with perhaps some documentation as to their > > worthlessness? > The stock is selling at $.025, and bonds are senior to stock, so > you're better sell them. and my bonds happen to be in the bank itself -- different entities. - quote - > I'll give you a nickel for them.
Thanks.  Steve -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#2
12-24-2008, 09:20 PM
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| Re: Wiped-out investment -- necessary to sell? In article <gisgai$s4g$1[at]blue.rahul.net> , Steve Pope <spope33[at]speedymail.org> wrote: - quote - > I have some worthless Washington Mutual bonds. They last
The stock is selling at $.025, and bonds are senior to stock, so> traded at one penny -- that is to say, one ten-thousandth > of face value. > Although certain WaMu bondholders will see some recovery, my > bonds happen to be in a class that will see nothing. > The question is -- do I actually need to sell them to take > the capital loss, or can I simply do nothing and claim it > anyway for 2008, with perhaps some documentation as to their > worthlessness? you're better sell them. I'll give you a nickel for them. Seth -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#1
12-24-2008, 08:28 PM
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| Re: Wiped-out investment -- necessary to sell? Steve Pope wrote: - quote - > I have some worthless Washington Mutual bonds. They last
selling at $1000 would be quoted at 100. Therefore, I assume that> traded at one penny -- that is to say, one ten-thousandth > of face value. > Although certain WaMu bondholders will see some recovery, my > bonds happen to be in a class that will see nothing. > The question is -- do I actually need to sell them to take > the capital loss, or can I simply do nothing and claim it > anyway for 2008, with perhaps some documentation as to their > worthlessness? > Steve Bond prices are quoted using a base of 100. I.e., a $1000 bond a quote of one penny means the $1000 bond was selling at 10 cents. If you owned at least five $1000 bonds, then the selling price of 50 cents rounds to $1 of value. No write-off without a sale. If you owned less than 5 bonds, that rounds down to zero. You get a write-off without a sale. All that being said, I advise you to arrange for the broker to take them off your hands. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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12-24-2008, 07:53 PM
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| Re: Wiped-out investment -- necessary to sell? "Steve Pope" <spope33[at]speedymail.org> wrote in message news:gisgai$s4g$1[at]blue.rahul.net... - quote - > I have some worthless Washington Mutual bonds. They last > traded at one penny -- that is to say, one ten-thousandth > of face value. > Although certain WaMu bondholders will see some recovery, my > bonds happen to be in a class that will see nothing. > The question is -- do I actually need to sell them to take > the capital loss, or can I simply do nothing and claim it > anyway for 2008, with perhaps some documentation as to their > worthlessness? > Steve If they are trading at a penny, then they are not worthless in IRS's view. The safest bet would be to sell them for a penny or maybe have the broker buy them from you for a penny before the end of 2008. Then you would have a recognized loss. -- Charles M. Shanes, CPA Charles M. Shanes CPA, LLC Richmond, VA QuickBooks ProAdvisor Microsoft MPAN Member for SBA www.shanescpa.com cshanes[at]-Delete-This-Nospam-shanescpa.com -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
12-24-2008, 06:13 PM
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| Wiped-out investment -- necessary to sell? I have some worthless Washington Mutual bonds. They last traded at one penny -- that is to say, one ten-thousandth of face value. Although certain WaMu bondholders will see some recovery, my bonds happen to be in a class that will see nothing. The question is -- do I actually need to sell them to take the capital loss, or can I simply do nothing and claim it anyway for 2008, with perhaps some documentation as to their worthlessness? Steve -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| investment, sell, wipedout |
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