Worthless Stock or Securities Valuation

Assuming certain requirements are satisfied, Internal Revenue Code (IRC) Section 165(g) allows a deduction for worthless stock. To support the claim that the stock is worthless, it must be proven that the security has no liquidating value and that there is a complete lack of future potential value. An independent valuation should be obtained to provide the necessary information in support of the lack of value for the securities. AccuVal has the expertise to complete such valuations and can provide key information to help meet the requirements for a worthless stock deduction.

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The following is needed to determine how AccuVal can help:

Three years of historic, detailed financial information on the company equity being valued
Detail of the equity ownership structure and further detail regarding all classes of stock and those being claimed as worthless, including liquidity rights and dilution factors
Written description from management as to the reasons for the decline of the business

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