I have a client who purchased shares of stock several years ago for $9500. As time went on, stock price kept declining. In 2005, company filed for bankruptcy. She tried to get her "investment" of $9500 named in the bankruptcy but it was rejected. I'm not sure if the bankruptcy has been finalized. She finally sold the stock in February 2006 for $188. She wants to claim the loss in 2005. I really don't believe she has a taxable event until 2006. Am I correct?
Comment