How to Deduct Bankruptcy Loss on Taxes

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How to Deduct Bankruptcy Loss on Taxes – This is a place for the community to provide tips and advice on How to Deduct Bankruptcy Loss on Taxes. This topic was created by Josanne Ganzevles and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - How to Deduct Bankruptcy Loss on Taxes | eHow

Published: 9 years, 3 month(s) ago | Submitted by Ian Fedorchick | permalink

As any business owner or investor knows, positive returns from extending business credit or purchasing stock are never absolutely guaranteed. If a company you invested in, or extended credit to declares bankruptcy, it's possible to offset at least part of your loss when filling out your federal income tax return. First, however, you need to clarify...

For further reading: http://www.ehow.com/how_5663579_deduct-bankruptcy-loss-taxes.html ^[1]

Tip 2 - Tax Benefits of Losses

Published: 9 years, 3 month(s) ago | Submitted by Charles Hou | permalink

You can gain from your losses, at least with the IRS. Normally, you won't be able to save more money in taxes than the amount you lost, but you will be able to mitigate your losses with a lower ...

For further reading: http://finance.zacks.com/tax-benefits-losses-2190.html ^[2]

Tip 3 - Can I Get a Tax Deduction for Worthless Stock?

Published: 9 years, 3 month(s) ago | Submitted by Karen Mc Cullough | permalink

If you invest in stock that loses its value completely, it is possible to claim this loss as a tax deduction, but you must do so at the correct time and only after making sure that the stock has actually lost all technical value. For example, if the company has declared Chapter 7 bankrtupcy, been liquidated and gone out of existence altogether, it will be considered worthless stock.
Tags: Bankruptcy And Taxes, Chapter 7 Bankruptcy, Worthless Stock

For further reading: http://bankruptcy-law.freeadvice.com/bankruptcy-law/business_bankruptcy/tax_reduction.htm ^[3]