How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Bill Your Own Question
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3151
Experience:  EA, CEBS - 35 years experience providing financial advice
Type Your Tax Question Here...
Bill is online now
A new question is answered every 9 seconds

If you have stock that just filed chapter 11 do you claim this

Resolved Question:

If you have stock that just filed chapter 11 do you claim this loss on your taxes for 2008 and do you claim purchase price of this stock? I transfered this stock from smith barney to Ameritrade before they filed and ameritrade does not show my original purchase price. Any advise on this would be appreciated. One other question regarding my taxes... I had unemployment income and SS surviors benefits along with interest income for 2008. I paid no taxes for 2008 since they dont deduct I have to get a type of form with estimated taxes on it and pay now before the end of the year 2008?
Submitted: 7 years ago.
Category: Tax
Expert:  Bill replied 7 years ago.

When a company files for chapter 11 that does not mean the company is worthless. Chapter 11 permits the company to keep operating and reorganizes under bankruptcy. A loss on a stock can only be claimed when the stock is totally worthless. If the stock eventually becomes worthless then the loss that you would claim would be your investment in the stock.

If you are not going to owe any federal income taxes this year then you will not have to pay estimated taxes. Unemployment benefits and interest income are taxable. Social security benefits start to become taxable if the sum of 50% of the benefits you receive plus your other taxable income exceeds the base amount of $25,000 if filing single ($32,000 if married filing jointly). In 2008, generally you will not have to file a tax return if your gross taxable income from all sources (unless you have self-employment income of $400 or more) is less than $8,950 if you are under age 65.,,id=199618,00.html


Customer: replied 7 years ago.

I am confused with your answer. I did not work during the 2008 year. I received unemployment and Social Security Surviors benefits since my husband passed away.

I have interest from cds, bank accounts. All of this combined will be over 25,000.

I have 3 dependents. Will I have to file an estimated tax now to pay towards money

that will have to be paid when I file my taxes in 2008? Where would I get such a form?

I just do not want a penalty. Also my other stock did earn money when sold so I guess

even though my stock is all at a terrible loss I still have to pay on the money gained at

the time of sale right?

Thanks for your help. I would like this answer

Expert:  Bill replied 7 years ago.
How much will receive in social security benefits this year? How much did you receive from unemployment benefits and how much from interest? How much was the gain on your stock when you sold it? Was the stock titled only in your name, joint name, or your husband's name when it was purchased? What year did your husband pass away? How old are your children? Is the stock that filed for chapter 11 still trading?
Customer: replied 7 years ago.

My husband passed away in2007. The stocks are in my name,and my kids names with me as the caretaker. My girls are 11,13, and 15. my social security survior benefits were about 11,000. The unemployment was about 5,000. Interest could be about 10,000 but that might be to high. Stock gain in Jan 08 was 9,000 but reinvested and now losing in stocks. I have a loss between me and my girls stocks around 30,000 loss but like you stated they are not chapter 7. The stock that has filed chapter 11 is not trading..its zero right now. The sad part all this was for my girls future after my husband passed and now its disappeared. Lets just say the stockbroker lost his job because of what he did to us and others...quick buying and selling fast and not being conservative as I asked.


THanks for your help.

Expert:  Bill replied 7 years ago.

Since your husband passed away in 2007 and you have dependents you can file as a qualifying widow. By filing as a qualifying widow with 3 dependents you can have up to $24,900 (based on standard deduction and exemptions) of taxable income without liability for federal income taxes. Your gross taxable income would be approximately $26,700 ($5,000 + $10,000 + $9,000 + $2,700 of social security benefits) based on the information you provided. A portion of your social security benefits would be subject to tax (approximately $2,700). However, you can claim the child tax credit for your children which will eliminate any tax you owe.


Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3151
Experience: EA, CEBS - 35 years experience providing financial advice
Bill and 4 other Tax Specialists are ready to help you

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • Wallstreet Esq.

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
< Last | Next >
  • Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
  • Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • Richard's Avatar


    Tax Attorney

    Satisfied Customers:

    29 years of experience as a tax, real estate, and business attorney.
  • Robin D.'s Avatar

    Robin D.

    Senior Tax Advisor 4

    Satisfied Customers:

    15years with H & R Block. Divisional leader, Instructor
  • Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • jgordosea's Avatar


    Enrolled Agent

    Satisfied Customers:

    I've prepared all types of taxes since 1987.
  • R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    Over 20 Years experience