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Cymer Inc. Message Board

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  • dcxavier dcxavier Mar 15, 2001 8:56 PM Flag

    OT: Help with US Taxes!

    It may not be as simple as the others have put it. I believe that TWA is trading on the OTC BB as TWAIQ.OB at about 10 cents a share. If she still holds the shares, she needs to sell them to establish the loss, and it can't be written off until next year's taxes. This loss will be recorded on Schedule D. If she was unfortunate enough to have bought some shares within one year of selling them, she will have to split the loss up into long term and short term. When she works through Schedule D, it will work out that only $3000 can be deducted immediately, and the rest will be called a capital loss carryforward. In the following years, she enters the capital loss carryforward into Schedule D, and it will give her a new $3,000 deduction and reduces the carryforward by the same amount. This will go on for about ten years until it is eaten up. Also, she will have to use the 1040 long form all of those years.

    Here's my amateur advice. If she still holds the shares, she should sell them. She also needs to gather up all the receipts of what she paid for the stock. This may a serious challenge in itself if it was from payroll deductions over a number of years. Hope she saved the paperwork! Then next year, go to HR Block and let them do the work, that's what they're good at.

    If these shares were held in an 401K or IRA, then all of this is moot. You can't deduct losses in these accounts and she would be SOL.