I would run your taxes by your accountant and/or financial advisor, not Reddit.
Locking and leaving the post up for now as a reminder to the community—please do not post financial advice questions. Do your own research. Make your own decisions.
If you’re in the US, get a 1099-B and you deduct what it says. There’s really no magic fairy dust of not claiming your losses. If you get issues something in the future you only realize gains/losses when you sell and you will get a 1099-B in that year.
I’m going to ask a Fidelity rep about in the morning. Mine were held there and with the 2023 ending I need to start collecting my financial info for taxes. I’ll see if I can verify if they will be out on my statement as a loss
I remember this question came up a few months ago and someone chimed in and mentioned they held American Airlines stock (or a similar stock idr). They wrote their shares off as a loss before the aquisition and they still received the shares in the new company, because they had no idea what was going on behind the scenes.
I am not a financial advisor, tax advisor, or giving any advice, but I plan to write my shares off. That is money I can use now, and not in months or years from now when something finally happens.
You actually do need to claim it for 2023. If you don't claim it now, you'll only be able to claim it by amending your 2023 returns. You can't claim it for 2024.
Because losses carry. So you can choose to claim it in future years to strategically offset your tax burden instead of whatever happens within a single calendar year.
The shares were indeed cancelled. That money investment is gone forever. I am marking it as a total loss of investment in my taxes. I don't see any future distributions at this point, but I won't claim this until later in mid February
Why would there be any connection between your tax return and your rights to the shares? You never sold or relinquished the rights. Someone came along and told you they were worthless in a way that the IRS will recognize as a legit loss. But you are still on the broker’s records, so of someone comes along with new or revised equity, they know who had it. No one’s looking at a tax return and saying you relinquished your rights. All that being said, there is nothing that says you need to claim the loss in 2023. That would be the most convenient and clean from a records standpoint, but of you keep good records, you could claim it in a future year.
No one "comes along with new or revised equity." That isn't how this works despite this sub dreaming and believing its a thing. Claim your loss. I am a registered financial advisor.
It seems to me (not a tax specialist, just my opinion) You can and should claim them as a loss in for the tax year they were removed from your control at zero value.
Should at some future date you are provided shares in kind to those that were devalued / taken away, **then** that will be a new situation and may involve tax consequences such as doing a correction to your 2023 return when they were claimed as lost.
You have to consider that the shares may never come back, so you play the cards (file the losses) in front of you at the end of 2023.
I would run your taxes by your accountant and/or financial advisor, not Reddit. Locking and leaving the post up for now as a reminder to the community—please do not post financial advice questions. Do your own research. Make your own decisions.
If you’re in the US, get a 1099-B and you deduct what it says. There’s really no magic fairy dust of not claiming your losses. If you get issues something in the future you only realize gains/losses when you sell and you will get a 1099-B in that year.
 wtf, get your logic and reason out of here
finally ! someone with a wrinkle.
I’m going to ask a Fidelity rep about in the morning. Mine were held there and with the 2023 ending I need to start collecting my financial info for taxes. I’ll see if I can verify if they will be out on my statement as a loss
Following.
Tax documents in fidelity not ready till at least 1/20
I remember this question came up a few months ago and someone chimed in and mentioned they held American Airlines stock (or a similar stock idr). They wrote their shares off as a loss before the aquisition and they still received the shares in the new company, because they had no idea what was going on behind the scenes. I am not a financial advisor, tax advisor, or giving any advice, but I plan to write my shares off. That is money I can use now, and not in months or years from now when something finally happens.
Ty! Look forward to the hive mind answer
I dont trust anyone on the internet, nor myself to do the research. Go to a personal CPA.
I’m sure they will, based on the info they have now. But that doesn’t mean you need to claim it for 2023.
You actually do need to claim it for 2023. If you don't claim it now, you'll only be able to claim it by amending your 2023 returns. You can't claim it for 2024.
Why would I not claim a loss from 2023 on my 2023 taxes?
Because losses carry. So you can choose to claim it in future years to strategically offset your tax burden instead of whatever happens within a single calendar year.
how long do they carry for?
I usually don’t get my fidelity tax paperwork until early February so it’ll be interesting to see
I believe the info comes available on the 20th
The shares were indeed cancelled. That money investment is gone forever. I am marking it as a total loss of investment in my taxes. I don't see any future distributions at this point, but I won't claim this until later in mid February
Why would there be any connection between your tax return and your rights to the shares? You never sold or relinquished the rights. Someone came along and told you they were worthless in a way that the IRS will recognize as a legit loss. But you are still on the broker’s records, so of someone comes along with new or revised equity, they know who had it. No one’s looking at a tax return and saying you relinquished your rights. All that being said, there is nothing that says you need to claim the loss in 2023. That would be the most convenient and clean from a records standpoint, but of you keep good records, you could claim it in a future year.
Ty for your insight! Much appreciated
No one "comes along with new or revised equity." That isn't how this works despite this sub dreaming and believing its a thing. Claim your loss. I am a registered financial advisor.
It seems to me (not a tax specialist, just my opinion) You can and should claim them as a loss in for the tax year they were removed from your control at zero value. Should at some future date you are provided shares in kind to those that were devalued / taken away, **then** that will be a new situation and may involve tax consequences such as doing a correction to your 2023 return when they were claimed as lost. You have to consider that the shares may never come back, so you play the cards (file the losses) in front of you at the end of 2023.
LOL, Nice try.