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Nadia purchased 1,000 shares of Music Company, Inc. stock in 2004 for $30,000. The stock fell in value to $8,000 in 2008 and to $6,000
Nadia purchased 1,000 shares of Music Company, Inc. stock in 2004 for $30,000. The stock fell in value to $8,000 in 2008 and to $6,000 in 2009. With the stock continuing to lose value, Nadia finally sold the stock in the current tax year for $1,050. Is Nadias loss deductible and, if so, in what year(s) is it deductible? What result if Nadia did not sell the stock in the current tax year but, instead, the stock became worthless in that year?
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