Hi DK2023,
I am sorry to hear that some of the stocks that you purchased are now considered worthless. You can definitely claim these losses on your personal tax return. If you are able to sell the stock and the value is $0 your loss would be the amount that you paid for the stock. If the Company stock is officially deemed worthless and you can not sell it, you can claim a loss on your tax return for the amount that you purchased the stock for. These losses would be considered capital losses. If you held the stock for 1 year or less it would be short-term and if you held it for more than 1 year it would be long-term. You can offset these losses against capital gains of the same type (long-term or short-term) and can deduct net capital losses of $3,000 per tax year. Any additional capital losses can be carried forward to future years
Hope this answers your question and thanks for participating in the Ask the Experts Event!
AnthonyC_CPA
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