Worthless shares and capital loss

[poppy]

Many people currently have worthless shares in companies that are basically bankrupt, that they are unable to claim any capital losses on because things have not been finalised.

For the current financial year, as most shareholders are unlikely to have many other capital gains, the issue of being unable to offset their gains against their capital loss is not that big.

But in the next few years it may be a problem.

It seems that some who hold worthless shares from many years prior are still unable to claim their capital loss according to ATO rules, and may NEVER be able to claim the loss at all.

I hear there are some companies who will "buy" your worthless shares for a small admin fee, meaning that you are able to claim your capital loss. I assume this is all a scam? Is there any hope for those with worthless shares to be able to claim their losses? (eg sell to a family member for a couple of dollars etc)

 

[Sunfish]

Why is it a scam? Do you know what you are talking about or are you just making anti-share noises to win friends?

 

[poppy]

Why is it a scam? Do you know what you are talking about or are you just making anti-share noises to win friends?

Sunfish, you have the wrong idea about my post.

If you see an offer on the internet from an unknown company to pay $100 to offload worthless shares and claim a capital loss, any reasonable person would be cautious!

The ATO makes it clear that "worthless" shares cannot be claimed as a capital loss until due process is followed. This is a fact.

I am not anti-share and not trying to win any friends, just interested in discussing a tax issue which interests me.

 

[Sunfish]

The ATO makes it clear that "worthless" shares cannot be claimed as a capital loss until due process is followed. This is a fact.

Yes, That is correct, and it can take years. I would take advice from my accountant before taking up such an offer, but on the face of it, transferring ownership (selling?) should cement the loss and allow it to be deductable that year.

Sorry about the sensitivity re shares. There's a lot of share bashing going on.

 

[willair]

Sorry about the sensitivity re shares. There's a lot of share bashing going on.

Just watch over the next few hours -days to see if Chrysler goes belly up then you will see some serious share bashing,batten down the hatches and open the rum..imho willair..

 

[redwing]

There is always a fight when stocks are involved

 

[The Y-man]

I've used delisted.com.au before

http://www.delisted.com.au/buyworthlessshares.aspx

Cheers,

The Y-man