Worthless Security

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.
Mentioned in ?
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.
165(g), a taxpayer treats a worthless security as a deemed sale of a capital asset on the last day of the tax year.
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.
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.
a regime emboldened by a trail of worthless Security Council
When Sub 1 took the worthless security deduction on the Sub 2 stock, its basis would reflect such increase from the cancellation.
Regardless, this option will bypass the worthless security provisions of Sec.
165(g) worthless security loss in the year the debt becomes wholly worthless.
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.
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.
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.
Whether the shareholder of an insolvent corporation was allowed a worthless security loss under Sec.