propert
1 year ago
Hello again, chemist and others. As for DESTQ, I'm still trying to get my broker, Fidelity, to recognize the loss this year. I called them, since the ticker is showing $0 value, and asked them if I can get a 1099 to offset my gains in other tickers. They said not until more time goes by. I seriously don't understand what they're waiting for. But definitely am going to report a loss, one way or another. I only had 18,000 shares left over (~$500 in equity) from share flipping when the music finally stopped about two years ago. That'll be worth $100 or so in taxes so it's a small matter between me, my broker and the IRS. Shame that as we talk about tax losses, that the owners of DEST weren't able to salvage any of the value they had in this company. They just quit and walked away from a $50 million dollar business? Shame on them (and us, for trusting them with our money).
Anyhow, I'm currently invested in $ME and that's a double entendre :) I am doing lots of self care and I also bought that solid stock that rallied 10%+ today with some FDA-related news.
propert
3 years ago
Well, I guess that settles, once and for all, what was truly meant by the disclaimer about imminent share cancellation, in DEST's original chapter 11 filing, right? It was written in plain english. Therefore, those that read and understood the dockets continue to have the apparent edge over some folk that prefer to draw fictitious conclusions from "charts" like a crystal ball.
True, this was always a lotto play for us. I was always appreciative of chemist72 and the dialog that we were able to start here around real prospects, rather than fictitious book values and wishful thinking. I only wish that there'd been a resource for shareholders to have a say in what went down before the share cancellation. Had there been, perhaps all our early misgivings about the auction's "preferred bid" giveaway, duplicate claims and canceled hearings might have gotten some response on the part of the company. Instead, we were left with some false hopes and no outlet for keeping pressure on the company to drive any residual value to the shareholders.
chemist72
3 years ago
If you want to claim a "capital loss" on your 2021 tax return, the simplest and easiest way to do so is to sell your shares before the end of the year and, more importantly, to sell them BEFORE they become untradeable.
Today I was able to sell 2 lots of shares with 2 different brokerages. At Schwab, I was able to place a sell order "at the market". Those shares traded at $.0001; TDA would not accept an at the market order, only a limit order. So I placed a limit order to sell some shares at the same price through TDA. That is at a limit price of $.0001.
I wasn't going to play games and try to sell at a higher price. I was just happy that an MM was able to complete those trades for me.
IF I waited until I wasn't able to sell those shares (which may happen after DESTQ cancels their shares), then I would have to prove to the IRS that the shares were worthless. I don't know how easy or how difficult that might be, so I was happy to sell my shares at any price.
Below are a couple of links that explain somewhat how to claim a worthless stock tax deduction.
https://thelawdictionary.org/article/how-do-you-report-capital-loss-on-stocks-from-companies-that-went-bankrupt-and-went-away-like-enron/
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/losses-homes-stocks-other-property
If someone prepares your taxes for you, you may want to consult them to be sure.
But, in any case, good luck to you this year and next!