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.
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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
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
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.
When to write off bad debt
Whether the shareholder of an insolvent corporation was allowed a worthless security loss under Sec.
Losses related to an insolvent corporation
1 502-76(c) Section overridden Effect 11 Several tax liabilities 108(a) Taxable debt cancellation income 7108(e)(6) Deemed fair market value satisfaction 165(g)(3) Generally defers worthless security loss until subsidiary disposes of substantially all of its assets 165(g)(3) May disallow all or part of a worthless security loss 304 Taxable intercompany sale gain or loss deferred 311 (a) Loss on distributed property recognized but deferred 316 Generally eliminates subsidiary's earnings and profits on its deconsolidation 332(b)(1) but Aggregation for control not 337(a) 351(a) Aggregation for control 357(c) If Sec.
Commonly encountered provisions overridden by Sec. 1502 regs

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