Check to see if you have worthless stock or loans that are completely uncollectible
Answer:
You can deduct the loss on a worthless security without selling it but only if the stock or loan is completely worthless. If it is truly worthless, you can treat the item on your return as if it were a short term capital asset you sold for $0 on the last day of the tax year. In fact you can take a write-off over and above your gains to the extent of $3,000 this year.
Interested in more Five Last Minute Refund Tips Questions?
- Don't Overlook the value of the IRA deduction
- If you are self-employed, take advantage of an SEP plan
- Take the American Opportunity Credit if you have children in undergraduate college.
- Check to see if you have worthless stock or loans that are completely uncollectible
- If you itemize, don't forget the non-cash contribution deductions.
