Question: How do I realize the loss from a stock no longer trading because its price is $0.00?

I own 1,000 shares of IndyMac (IDMC) that are worth $0.00. How do I closeout my position by selling my shares or at least realize my loss because the stock no longer trades?

Answer:

It is 100% relized loss and you need to call your broker to adjust your portfolio. This is a lesson for someone who trade penny stocks instead of bluechips. Slowly gain but ensure that won't end up with tragedy.

See IRS publication 550. If you can't sell, you MUST take proactive steps to abandon the stock; once abandoned, you can claim it on your taxes that year.