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IRS Hell
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[QUOTE]Originally posted by Purl Gurl: [QB] Tex, your broker should have two types of documents available to you which can usually be downloaded. Rummage around in your account. Look for 1099 documents and 1044-D documents. Your 1044-D documents can be used for your tax return "Schedule D" attachment. Whatever your broker reports is legitimate for use. Your broker is responsible for accuracy, not you. Shift the blame to your broker when you can. Your broker generated 1044-D will display two reports, buy and sell. Each will have a grand total; total money for buy, total money for sell. Hopefully, your buy will be greater than your sell creating a net loss, although year-over-year is a net profit (equity growth). Eventually you will have to pay long term capital gains on your equity growth, but you will benefit to delay this as long as possible. In those reports you should find cost of buying GVRP, but no sale of GVRP. This lends to your net loss. However, when you sell GVRP, if this ever does happen, then GVRP will show in your sale balance sheet, sometime in the future. You cannot use GVRP as a single one year event, buy and sell, but can use GVRP as a single year purchase cost, while leaving GVRP on your balance sheet for some future "sale" account balancing. Other words your GVRP is now in the long term capital gains (loss) category for taxes. This year, GVRP is a cost. Next year, GVRP will not show as a cost. In the future, GVRP can only be reported as a sell. You might try to use GVRP as a total write off loss, but the IRS might ask for documentation to prove GVRP is a "forever" worthless stock; there is no sell report for GVRP. A need would be to demonstrate defunct status, bankruptcy or similar. Unfortunately, there is not an easy way to use these worthless stocks for a loss write off. I have a dozen or so of those "worthless" stocks which simply carry over from year-to-year as basically non-existent for balance sheets; they are not listed. Trick is to show as many single year costs as possible for a single year net loss, and hope you can take advantage of loopholes in long term capital gains, much later in life. GVRP is a "now" loss and if GVRP becomes a profit later, GVRP will then mess up your single year net loss. GVRP sucks no matter how you look at it, unless wildly profitable. We have until midnight, December 31, for GVRP to become a legal single year loss. That is not about to happen. Worthless stocks screw up everything. Purl Gurl [/QB][/QUOTE]
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