X-Message-Number: 6502 Date: 12 Jul 96 02:13:40 EDT From: Paul Wakfer <> Subject: Re: Pledging to the Prometheus Project The question of tax deductions for losses on the value of shares is way off topic for this forum. So I apologize for continuing the discussion and I do so only because of its possible relevance to those thinking of pledging to this Project. Neither answer to the stock loss write-off question has addressed the question of how a new value for the stock is determined. This is obvious if the stock is publicly traded and actually sold. But otherwise the following questions need to be addressed: 1. Is it necessary to "justify" the sale price of non-publicly traded shares? And if so, then what justification is necessary to satisfy the IRS? If it isn't necessary, then clearly every one who owns stock should sell them to someone for $1 with an arrangement to immediately buy them back for $1. Then they would have the use of the money gained by the loss until they decided to sell the shares "for real" and would then have to pay tax on the larger capital gain (but not larger, in total, when counting the tax loss from the interim share price reduction). Somehow I don't think the IRS would allow the "borrowing" of this loss from what the IRS believes is *its* money. 2. How is it determined that a stock is "worthless"? Does the issuing corporation have to go bankrupt or out of business? Do you have to make some "reasonable" attempt to sell it and fail to find a buyer, or what? Or can you just declare it worthless, destroy the shares and take the loss, making it like a donation without requiring a 501(c)3 to put it through (if you have capital gains to set it against, of course)? (And in the process possibly increasing the value of all remaining shares.) I hasten to add that because of the way that the Prometheus Project is structured, I also don't think that any of these stock loss questions are very relevant except perhaps in the short term or in the case of total failure of the project to achieve its research goal even though fully funded and executed for the full 10 years. I sincerely believe that stock issued to fund this project will ultimately be of great value. -- Paul -- !!!!! REVERSIBLE BRAIN CRYOPRESERVATION *CAN* BE ACHIEVED IN 10 YEARS !!!!! Paul Wakfer email: Voice/Fax: Pager: US: 1220 E Washington St #24, Colton, CA 92324 909-481-4433 800-805-2870 Canada: 238 Davenport Rd #240, Toronto, ON M5R 1J6 416-968-6291 416-446-9461 (currently in Canada) Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=6502