Can we deduct our loss on options in a bankrupt company?
September 18, 2006
Date: Wed, 12 Apr 2006
My husband has Delta Air Lines employee stock options which were given to him as an employee. The company is now bankrupt. Can we claim a deductible loss for these options on our income tax returns?
Date: 01 May 2006
No. Since there is no taxable income when the options are granted, you have no tax basis (investment) in the options to deduct.