worthless stock writeoff

[sdtaxman]

In the last few days I have had two different clients, with two different investment representatives and say they were told they could write off the worthless stock loss whenever they wanted even 10 years later if they want to. I thought the rule was to take the loss at the time it becomes worthless not whenever you want to. Has anybody had much experience with this.

Thank you,

[David1980]

Has anybody had much experience with this.

Yes, I've had lots of experience with people telling me information that their tax knowledgeable hair stylists or neighbors or good friends have told them.

[Uncle Sam]

Outside Non-Tax Expert Advice

We've ALL had that experience.

[veritas]

I can imagine

the conversation went something like this:

Investor-That stock you recomended really took a nose dive. I lost over ?k on it.

Stock Picker-You can take it off on your taxes.

Investor- I don't have any income to claim it against this year. Remeber I LOST money.

Stock Picker-(A quick thinker with lots of previous experience) Oh don't worry you can take the loss any time within (Hmmm what sounds good and will make this problem go away) ten years!

Client-Great, I'll recoup all my losses by taking a credit against my taxes when I want.

Stock Picker- (two weeks ago) Hey I think we should put some in to Bear Stearns. Whatcha think?

[BP.]

conversation with client

Yes, I've had lots of experience with people telling me information that their tax knowledgeable hair stylists or neighbors or good friends have told them.

Me: You qualify for the $600 economic stimulus payment.
Client: Oh, I guess my eye doctor was wrong.
Me:
Client: He said I wasn't getting it.
Me: Really?? What a coincidence- I'm putting up an eye chart on that wall!