Tax Law (Questions About Taxes)/stock sales

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Question
I live in NY. I bought stock in 2001 for companies that shut down soon after. I lost about 50,000.00.
I never filed for taxes to see if i can gain some of my money. Is it too late to do to file? What form can I use?
One of the stocks still appears on my portfolio with a $0.01 per share. does this mean I still own it and cannot file until sold?
Thank you for your answer in advance.

Answer
Mona,

Thanks for your question.

Technically, you should have taken the losses when the stocks became worthless. If that happened in the last three years (which does not appear to be the case) you can file an amended return for that year.  If you did not learn of their worthlessness at the time, you can file when you learned they were worthless.

The one cent value is probably a nominal amount that is listed but the stock is not likely trading with no likelihood that it will ever have value.  Additionally, you can't sell the stock because the commissions would be more than the proceeds.  Take the loss.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

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I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

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DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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