Worthless Security

A security with no value. Examples include bonds past maturity or stocks in a bankrupt company. Obviously, holding worthless securities represents a loss to the owner.

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Worthless Securities

References in periodicals archive ?

6511(d)(1), to the extent the claim relates to an overpayment on account of a deduction for a bad debt or a loss from a worthless security, or the effect that the deductibility of such debt or loss has on the application to the taxpayer of a carryover.

'When will I get my refund?"

165(g), a taxpayer treats a worthless security as a deemed sale of a capital asset on the last day of the tax year.

Taxation of worthless and abandoned partnership interests

Two million people who were sold worthless security to protect against fraudulent credit card use could be in line for hundreds of pounds worth of compensation.

Cash point

If an investor's security--whether it be stock in a corporation or another security--becomes worthless at any time during the year, his loss is treated as a capital loss realized in a sale or exchange of the worthless security on the last day of that year.

Part II: Stocks

a regime emboldened by a trail of worthless Security Council

Darfur, an ICC arrest warrant, and the humanitarian imperative

When Sub 1 took the worthless security deduction on the Sub 2 stock, its basis would reflect such increase from the cancellation.

Avoiding income on bad-debt write-off of subsidiary's loan

Regardless, this option will bypass the worthless security provisions of Sec.

When is stock worthless?

165(g) worthless security loss in the year the debt becomes wholly worthless.

Corporate financing companies: treatment of losses

If an investor's security-whether it be stock in a corporation or another security--becomes worthless at any time during the year, his loss is treated as a capital loss realized in a sale or exchange of the worthless security on the last day of that year.

Stocks

1.1502-80(c) was taken into account, and, since all of the assets were being disposed of, the IRS allowed a worthless security deduction for the subsidiary's common stock.

Intercompany debt in a deemed asset sale election

Furthermore, it is incumbent upon the taxpayer to show that the worthless security lacks "future value." In making this determination, the courts take into consideration several factors, such as the debtor's age, educational status and future earnings potential.

When to write off bad debt

Whether the shareholder of an insolvent corporation was allowed a worthless security loss under Sec.