I own 1000 shares in GM. I bought them at $10/share (ouch!). They are in my SEP-IRA.?
Monday, May 31st, 2010 at
10:48 pm
I would like to know:
1) What will happen to my shares if GM declares bankruptcy?
2) If it re-emerges from bankruptcy, and issues new stocks under a new name, what will happen to my stocks under the Obama plan?
3) If the stocks go to Zero, and new shares under a new name not given to old share holders, when can I deduct the losses on my taxes as the shares are in my SEP-IRA.
Thanks
Filed under: Retirement Planning
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Why would you wait for the company to go bankrupt?
(y
That company cannot last. They don’t make money. It is not possible.
Sell now, and save your money.
They become worthless.
1. They will be wiped out.
2. There’s a possibility you won’t get any shares at all. However, under the last plan out there current stockholders would get a 1% ownership stake in the new GM. So you’d be taking a 99% haircut over what you’ve already lost.
3. Since you bought them in your SEP IRA you bought your shares with tax-deferred money. You can’t claim a capital loss on your taxes.
Sorry to be the bearer of bad news.
its my understanding that if you have an llc then you can deduct the loss as an individual i would not know. I would say dump that stock yesterday, take the loss and move forward. Why people held onto this stock is beyond me. Ford was a better option from day one. They own the market in cars to government agencies. They pulled the first model t out the line back in the 30′s. So needless to say they are part of American History.