I worked for a company that had an esop plan for its employee's....the stock lost 35% of its value one year now that I'm retired and being forced to either cash it out or do a rollover can I deduct this loss on my taxes in 2017.
I received a letter yesterday stating that all former employees had to sell their stock this fall....what does this tell you about the company...I'm 60 years old

This post was edited on 4/28/17 at 10:17 pm

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Posted by Shepherd88

Member since Dec 2013

4590 posts

Posted on 4/28/17 at 2:36 pm to tigers1956

How old are you? Does the stock have a realized appreciation from when you bought it?

This post was edited on 4/28/17 at 2:37 pm

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Posted by Hawkeye95

Member since Dec 2013

20293 posts

Posted on 4/28/17 at 2:42 pm to tigers1956

was this in your retirement account or a regular account?

If you have capital losses, you can take it. Although there are rules about how much per year, offsetting gains, etc. Pretty sure the limit is $3000. You can roll over your losses though.

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Posted by jerryc436

Franklin

Member since Jan 2014

519 posts

Posted on 4/28/17 at 2:53 pm to tigers1956

It depends on whether you made purchases with pre tax money or after tax money. You may need to talk to a CPA to find out. There are special rules for ESOP's that may affect you.

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Posted by Shepherd88

Member since Dec 2013

4590 posts

Posted on 4/28/17 at 3:23 pm to jerryc436

quote:
pre tax money or after tax mone

Not necessarily

quote:
You may need to talk to a CPA to find out. There are special rules for ESOP's that may affect you.

But definitely this. Company stock inside an employer sponsored retirement plan can generate NUA and be distributed solely from the plan after age 55, receive no penalty, the basis be taxed as income and the gains be taxed as a cap gain. You definitely need to talk to someone about your situation and plan before you do anything though.

Ex. You retire from Apple with $500k of Apple stock. Say $50k is the basis and $450k is cap gains. You could make a distribution of all that and pay income on the $50k and a much more favorable Cap gains rate on the $450k.

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