Stock Tax Harvesting: How to write off worthless tickers like IRNTQ and HMNY when they can't be sold anymore?

Those abandoned securities can definitely be claimed as a capital loss - you don't need to actually sell them to realize the loss if they're genuinely worthless. This falls under the "worthless securities" provision in tax code. Your broker should be able to provide you with a worthless security form or written confirmation that can be attached to your tax return. Call their customer service line and specifically ask for documentation for "worthless securities" - they deal with this fairly regularly. When filing, you'll report these on Schedule D and Form 8949 with code "W" for worthless. The date of the "sale" would be the last day of the tax year in which they became completely worthless (December 31), and the sale price would be $0. You'll use your original cost basis as the loss amount.

After dealing with a similar situation last year with some defunct biotech stocks, I found this tool called taxr.ai (https://taxr.ai) that was super helpful for documenting worthless securities. It helped me pull together all the evidence I needed to claim my losses properly. I scanned my old trade confirmations and it extracted all the relevant purchase info, then it found documentation of when the stocks were delisted. Made it way easier to file everything correctly on my Schedule D without wondering if I was doing it right.

Just wanted to follow up - I tried taxr.ai after seeing it mentioned here and it was actually really helpful. I was skeptical at first but it found the exact SEC filings showing when HMNY (MoviePass parent company) was officially declared worthless. The tool generated a complete report with all my transaction details and the relevant SEC documentation showing the worthless date. My tax preparer said it was exactly what she needed to properly code everything on my Schedule D with the "W" code. Saved me hours of hunting down documentation!

If you're still having trouble getting your broker to help with documentation, try Claimyr (https://claimyr.com). I used it to finally get through to my broker's tax department after weeks of being stuck in their automated phone system. They have this demo video that shows how it works: https://youtu.be/_kiP6q8DX5c I was trying to get a worthless security letter for some penny stocks that disappeared from my account and kept hitting dead ends with customer service. Claimyr got me connected to an actual human at my brokerage within 15 minutes, and I had the documentation I needed the next day.

I take back what I said about Claimyr. Decided to try it yesterday after spending 3 hours on hold with my broker and getting disconnected twice. They got me connected to the tax department in about 45 minutes, and I didn't have to sit there listening to the hold music the whole time. Got my worthless securities letter for some biotech penny stocks that tanked last year. The rep even told me they have a specific internal form for this that I never would have known to ask for if I hadn't finally reached the right department. Already submitted everything with my tax return.

Hey, I actually went through this exact situation with HMNY (MoviePass) back in 2019! The key is that you need to identify the exact date the securities became worthless, not just when they were delisted. For HMNY specifically, they filed for bankruptcy in January 2020, and the courts determined the shares were officially worthless at that point. I was able to claim my full loss ($4,600 down the drain, ugh) on my 2020 taxes. Your broker should provide a "worthless securities" confirmation, but if they don't, you can use public bankruptcy filings or SEC documents as proof.

Don't forget that worthless securities are still subject to the capital loss limitations. You can only offset up to $3,000 of ordinary income per year after you've used the losses to offset any capital gains. Had to learn this the hard way when I tried to claim $12,000 in losses from some penny stocks that went to zero in 2022. I offset about $2,500 in gains from other stocks, then could only use $3,000 against my regular income. The remaining $6,500 had to be carried forward to future tax years.

I went through this exact situation last year with some defunct crypto mining stocks that got delisted. Here's what worked for me: First, contact your broker's tax department (not regular customer service) and specifically request a "worthless securities letter" or "abandonment letter." Most major brokers have a standard process for this. If your broker won't cooperate, you can still claim the loss but need to document everything yourself. Save screenshots of your account showing the securities, any emails with your broker, and find public records of when the companies went bankrupt or were delisted. For the tax filing, you'll use Form 8949 and Schedule D. Mark the transaction with code "W" for worthless, use December 31st of the tax year as the "sale" date, $0 as the sale price, and your original cost basis as the loss amount. One important thing - make sure you're claiming these in the correct tax year. Securities become "worthless" when there's no reasonable hope of recovery, which is usually when the company files bankruptcy or is officially dissolved, not necessarily when they stop trading. Keep all your documentation for at least 7 years in case the IRS has questions. The key is being able to prove you actually owned the securities and that they truly became worthless during the tax year you're claiming.