I own stock in oil companies and we took a big hit. I still own the stock but its worth a lot less now. How do I list the loss?

[JaimeG · Accepted solution]

Typically, you must actually incur a capital loss before you can deduct it, you must actually sell your stock for less than what you paid for it. However, if your stock becomes worthless for example because the corporation that issued it dissolved the IRS still allows you to claim a loss.

If you cannot sell your stock because it is worthless, the IRS allows you assign a sale price of -0- and use this figure to calculate your capital loss. If you sold your stock for pennies, on the other hand, you should use the actual sale price to calculate your loss.

For more information on Capital Gains and Losses please click on the link below:
Capital Gains and Losses