Enron stock - is it worthless yet?

See the following URL, and question 9 in particular.

stock was canceled on November 17, 2004, when thecompany went into bankruptcy. Common stockholders gotshares of the Common Equity Trust, which will terminate nolater than 3 years (6 years if extended by the bankruptcycourt) from the date the bankruptcy plan was confirmed. So I vote worthless at the point the Common Equity Trust terminates (or worth something if you can turn in your stock certificate for cash at the termination). It looks like a number of columnists considered it worthless in 2004, but I think it wasn't actually worthless then. Phoebe :)

This document may be of interest:

-- D.F. Manno | snipped-for-privacy@mail.com Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning. ­ Winston Churchill

Enron stock was officially canceled in November of 2004. At that time, Enron stated that they did not expect any former holder of the stock to ever receive a distribution. With the cancellation of the stock and the statement from the company, the stock would have been considered worthless by year-end 2004 and you should have taken your loss in

2004. (You can still amend 2004 to get a refund.) As there were never any distributions to former holders, the statement made in 2004 is evidence that the stock was worthless in 2004 and that should satisfy the IRS. It is possible, that you do not want to show the loss in 2004, but would prefer to show the loss in a later tax year. In order to do that, you would need to produce evidence that a market still existed in a later year.

-- Regards -

- Andrew

Kiplinger May 26, 2005 Enron stock was officially canceled on November 17, 2004, when the company went into bankruptcy. On its Web site, the company states that "we do not expect that distributions will ever be made to the former holders of Enron Corp. stock." That should be enough to satisfy the IRS. To claim the stock loss, report it on Schedule D as if you had sold it for $0 on December 31, 2004 (write "worthless" in the section where you are asked for the sale date and selling price). Your loss is the amount you paid for the stock. You must file your loss for the year in which the stock became worthless. So unless you took an extension on filing your 2004 tax return, you'll need to file an amended return

1040x. Milt Baker CPA