How do I write off a worthless stock that I purchased as ISO and now the company is bankrupt/closed?

hiphousedesign · ‎June 1, 2019

LudwigVan_fan · ‎June 1, 2019

Stock is a capital asset. You would report the "sale" of $0 and fill in the amount you paid for the stock as your basis. The result is a loss. Short term or long term depending on how long you held the stock.

The other thing to consider is whether the stock is Section 1244 stock. Page 52 of Pub 550 describes Section 1244 stock

https://www.irs.gov/pub/irs-pdf/p550.pdf

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

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How do I write off a worthless stock that I purchased as ISO and now the company is bankrupt/closed?