If you owned GM stock before it went through bankruptcy, you received shares in what became known as Motors Liquidation Company (MLTQQ). It finally stopped trading on pink sheets in 2011. This means that you probably have a loss which you should take on your 2011 taxes. A writeoff of such a loss can only be taken in the year in which the stock becomes worthless. If you've already filed your investment club return, it may mean filing an amended return, but it may be worth your while to do so.

Don't forget that capital losses like this may help lower your tax bill by offsetting capital gains. Up to $3000 in additional capital losses can even be used to offset ordinary income on members personal tax forms. If a member has more than $3000 in capital losses, they can be carried forward and used to offset income in future years.

You can't recover the money you lost on the stock, but you can make sure you get all the benefits you are entitled to out of a bad situation!

Laurie Frederiksen
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