Can I deduct loss of 401(k) stock on my income tax returns?

January 14, 2004

Date:  Tue, 16 Dec 2003
From:  Anonymous

I lost all my Kmart stock in a 401k plan. Am I entitled to deduct this as a loss on my taxes?


Date:  Wed, 7 Jan 2004


Since you did not report income relating to the amount put in the 401(k) plan, you have no basis in the stock and can't claim a loss for the stock.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links

Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+
Our Blog

Subscribe to Michael Gray, CPA's
Tax & Business Insight

We respect your email privacy